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Question 25 BB Bottling Company P/L manufactures bottles for wine. A unit of production is a case of 12 bottles. The following standards have been

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Question 25 BB Bottling Company P/L manufactures bottles for wine. A unit of production is a case of 12 bottles. The following standards have been set by the production engineering staff and the management accountant: (8 marks) Direct material Quantity Price $1.70 2.5 kg $0.68 per kg $5.60 0.20 hour $28 per hour Direct labour Quantity Rate Actual costs incurred in the production of 80,000 units were as follows: Direct material Direct labour $143,500 for 205,000 kg $464,475 for 16,500 hours All materials were purchased during this time period. Required Use the variance formulas to calculate the direct material price and quantity variances and the direct labour rate and efficiency variances. Indicate whether each variance is favourable or unfavourable. (4 x 2 marks)

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