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Question 2 (20 marks) Part A Bedok Curtains makes and hangs curtains. A particular window requires the following standard amounts: Direct materials: 10 square
Question 2 (20 marks) Part A Bedok Curtains makes and hangs curtains. A particular window requires the following standard amounts: Direct materials: 10 square metres at $5 per metre Direct labour: 5 hours at $10 per hour During the second quarter Bedok made 1,500 curtains and used 14,000 square metres of material costing $68,600. Direct labour totalled 7,600 hours for $79,800. Required: 1. Compute the direct materials price and efficiency variances for the quarter. (3 marks) 2. Compute the direct labour price and efficiency variances for the quarter. (3 marks) 3. Discuss the options Bedok has for computing the materials price variance, assuming Bedok had purchased 20,000 square metres of direct materials. (6 marks)
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