Nakita Inc. makes a popular running jacket. The company is developing standards for material, labour, & variable manufacturing overhead.

The standard cost for one jogging suit would be:

SQ$/$SH SP$/$SR

Standard Cost

$\backslash$table$[[$DM$,3\mathrm{.}5$ yards,$$6/$yard$],[$DL$,2\mathrm{.}0$ hours,$$\frac{18}{?}$ hour$]]$

$$21$

VMOH

$2\mathrm{.}0$ hours

$$4/$hour

$$8$

Cost per Jacket

$$65$

Data for last month's production:

# of jackets produced

$5,000$

units

$20000$ yards of Material purchased

$$118,000$

Yards of Material used

$20,000$

yards

Cost of Direct Labour hours $(10500$ hours$)$

$$200,000$

Required:

A$.$ Compute the direct materials price and quantity variances. What is the total material variance?

B$.$ Please provide one reason why DM price and$/$or quantity is $F$ or $U?$

A$.$ Compute the direct labour rate and efficiency variances. What is the total labour variance?

U$?$

B$.$ Please provide one reason why labour efficiency is $F$ or