Part A - 10 MARKS

The following materials standards have been established for a particular product:

Standard quantity per unit of output 9.4 kilograms

Standard price $16.90 per kilograms

The following data pertain to operations concerning the product for the last month:

Actual materials purchased 7,300 kilograms

Actual cost of materials purchased $116,435

Actual materials used in production 7,100 kilograms

Actual output 740 units

Please SHOW ALL CALCULATIONS

a) What is the materials price variance for the month? (AQ AP) - (AQ SP)

b) What is the materials quantity variance for the month? SP (AQ - SQ)

Part B - 10 MARKS

The following labour standards have been established for a particular product:

Standard labour hours per unit of output 2.8 hours

Standard labour rate $11.50 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 6,900 hours

Actual total labour cost $80,385

Actual output 2,300 units

Please SHOW ALL CALCULATIONS

a) What was the labour rate variance for the month? (AH AR) - (AH SR)

b) What was the labour efficiency variance for the month? SR (AH - SH)