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Manfred Incorporated produces a petrol-based product in the manufacturing process called POG. The standard costs are listed below: Standard Quantity or Hours Standard Price or
Manfred Incorporated produces a petrol-based product in the manufacturing process called POG. The standard costs are listed below:
Standard Quantity or Hours Standard Price or Rate
Direct Materials 4kg $2 per kg
Direct Labour 0.5 hour $16 per hour
Here are the actual costs for January 2020:
- 8,500 kilograms of the material was purchased at the cost of $2.25 per kilogram.
- All of the material purchased was used to produce 2,000 units of Zoom.
- A total of 850 hours of direct labour time was recorded at a total labour cost of $9,265.
Required:
a)Compute the direct materials price and quantity variances for the month.
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