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Pasts QualiTech Company produces computer circuits in large batches. Materials each batch. After forming the materials for a set number changeovers have been established: for
Pasts QualiTech Company produces computer circuits in large batches. Materials each batch. After forming the materials for a set number changeovers have been established: for the circuits are formed and polished in specialized machines that require continuous maintenance and of circuits, the machines are cleaned and prepared for the next batch of materials to be formed. The followving standards for machine are cleaned and Direct materials (15 litres $1.80) $27.00 Direct labour (02 hr.@ $22.00) Standard prime cost of a changeover $31.40 During the year, 400,000 litres of material were purchased and used for the changeover activity. There were 25,000 batches produced, with the following actual prime costs: Direct materials $740,000 Direct labour 107,500 (for 6,300 hrs.) Total Material Variance is $ Total Material Price Variance is This variance is (F/U) Total Usage Variance is $ 4.40 This variance is (F/U) This variance is (F/U) This variance is (F/U) Total Labour Variance is $T The Labour Rate(price) variance is $ The Labour Efficiency (usage) variance is $ This variance is (F/U This variance is (F/U)
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