Question
John's Surfboards manufactures fibreglass surfboards.The standard cost of direct materials and direct manufacturing labour is $100 per board.This includes 20 kg of direct materials, at
John's Surfboards manufactures fibreglass surfboards.The standard cost of direct materials and direct manufacturing labour is $100 per board.This includes 20 kg of direct materials, at the budgeted price of $2 per kilogram, and 5 hours of direct manufacturing labour, at the budgeted rate of $12 per hour.Following are additional data for the month of July:
Units completed
6,000 units
Direct material purchases
150,000 kilograms
Cost of direct material purchases
$292,500
Actual direct manufacturing labour-hours
32,000 hours
Actual direct labour cost
$368,000
Direct material efficiency variance
$12,500 U
There were no beginning inventories.
Required:
1.Compute direct manufacturing labour variances for July.
2.Compute the actual kilograms of direct materials used in production in July.
3.Calculate the actual price per kilogram of direct material purchased.
4.Calculate the direct materials price variance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started