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Sleeman-Coors Company (SCC), a company that produces a number of different carbonated caffeinated beverages. The management of SCC has gathered data for one of its

Sleeman-Coors Company (SCC), a company that produces a number of different carbonated caffeinated beverages. The management of SCC has gathered data for one of its product lines, Stwitch Cola, and wants to complete materials variances. After water, the main ingredient is sugar. For the most recent batch, SCC purchased and used 7400 Kg of sugar, at a price of $4.90 per Kg. The standards call for 6300 Kg and paying $3.25 per Kg.

Using this information, calculate the following

  1. Materials Price Variance 2 Marks
  2. Materials Usage Variance 2 Marks

In addition to the materials variances, the management at SCC would like to determine labour variances for Stwitch Cola. For this batch of Stwitch Cola, SCC used 1600 labour hours paying a total of $20800. The Standard Hours allowed is 1750. The HR Department has determined that the Standard Labour Rate should be $13.50 per hour.

Using the above information calculate the following:

  1. The Labour Rate Variance 2 Marks
  2. The Labour Efficiency Variance 2 Marks

Correct answers for Chapter 10 must state whether the Variance is Favourable or Unfavourable. To receive full credit your answer must be labeled as such.

For example: An answer such as - $4500 will not be given full credit, even if the number is correct. The same number shown as $4500 Favourable would receive full marks.

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