Question
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 |
| Quantity | Price | Cost |
Direct Materials | 6 kilograms | $ 3.50/kilogram | $21.00 |
Direct Labour | 1.3 hours | $11.00/hour | $14.30 |
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| $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? |
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B. | What was the direct materials quantity variance for March? |
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C. | What was the direct labour rate variance for March? |
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D. | What was the direct labour efficiency variance for March? |
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