Part Il

LUX Company makes lamps, for which the following standards have been developed:

Direct Costs

Standard Inputs

Expected for Each

Unit of Output

Standard Price

Expected per

Unit of Output

$35 per kilogram

Direct materials

3 kilograms

$16 per hour

Direct labour

2 hours

During March, production of 210 lamps was expected, but 200 lamps were completed. Direct materials

purchased and used were 620 kilograms at an actual price of $34 per kilogram. Direct labour cost for the

month was $8,500, and the actual pay per hour was $17.

b.

Compute the direct-material price variance for March. (4 marks)

Compute the direct-material quantity variance for the month of March. (4 marks)

What is total direct material variance? (3 marks)