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Side Hustle Inc. employs a standard cost system in which direct materials inventory is carried at standard cost. Side Hustle has established the following standards
Side Hustle Inc. employs a standard cost system in which direct materials inventory is carried at standard cost. Side Hustle has established the following standards for the prime costs of one unit of product: Standard Standard Standard Cost Quantity 6 kilograms Direct Materials Price $3.50/kilogram $11.00/hour $21.00 Direct Labour 1.3 hours $14.30 $35.30 During March, Side Hustle purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were $400,000, 90 percent of which were for direct labour. Side Hustle manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours. A. What was the price variance for the direct materials acquired by the company during March? B. What was the direct materials quantity variance for March? C. What was the direct labour rate variance for March? D. What was the direct labour efficiency variance for March
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