Question
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $5 per kilogram)$10.00Direct labour (2 hours
Jay Levitt Company budgeted the following cost standards for the current year:
Direct materials (2 kg of plastic at $5 per kilogram)$10.00Direct labour (2 hours at $12 per hour)24.00Variable manufacturing overhead11.65Fixed manufacturing overhead6.50Total standard cost per unit$52.15
Actual costs for producing 2,650 units were as follows:
Direct materials used
6,000kgDirect materials purchased (6,570 kg)
$32,193Direct labour (6,850 hours)
$66,445Variable manufacturing costs
$32,300Fixed manufacturing costs
$17,600
Calculate the materials price variance for materials purchased.
Materials price variance$enter the materials price variance
select a type of the materials price variance
Favourable
Unfavourable
Neither favourable nor unfavourable
Calculate the materials quantity variance.
Materialsquantity variance
$enter the materials quantity variance
select a type of the materials quantity variance
Favourable
Unfavourable
Neither favourable nor unfavourable
Calculate the labour price variance.(Round answer to the nearest whole dollar, e.g. 5,275.)
Labour price variance
$enter the labour price variance rounded to the nearest whole
select a type of the labour price variance
Neither favourable nor unfavourable
Unfavourable
Favourable
Calculate the labour quantity variance.
Labour quantity variance$enter the labour quantity variance
select a type of the labour quantity variance
Neither favourable nor unfavourable
Favourable
Unfavourable
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