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Question 6 (14 points) Deck Corp manufactures residential home decks. Standard price for materials (pine wood) and labour are as follows: $20 per metre
Question 6 (14 points) Deck Corp manufactures residential home decks. Standard price for materials (pine wood) and labour are as follows: $20 per metre for pine wood and $25 per hour for direct labour. Each deck was expected to use 30 hours of direct labour and 150 metres of pine wood. During July, Deck Corp built 10 decks, using total 1700 metres of pine wood and 320 direct labour hours. The actual price for pine wood and labour are as follows: $15 per meter for pine wood and $26 per hour for direct labour. Required (Put your answers in the space of next page.) Compute (1) direct materials price variance; (2) direct materials efficiency variance; (3) direct labour price variance; (4) direct labour efficiency variance. Be sure to label each variance is favorable (F) or unfavorable (U).
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