Speeds, Inc. makes a popular jogging suit. The company wants to develop standards for material and labour The standard price per unit for direct materials should be the final, delivered cost of materials. The standard price should reflect: The standard cost for one jogging suit would be: Standard Cost Card for Jogging Suits (1) * (2) (12 Standard Quantity or Hours 3.5 yards 2.0 hours (2) Standard Price or Rate $6 per yard $18 per hour Direct materials...... Direct labour Total standard cost per suit ........ Standard Cost $21 36 $65 The following data are for last month's production: 5,000 units Number of suits completed......... Cost of material purchased (20,000 yards * $5.40 per yard) Yards of material used Cost of direct labor (10,500 hours @ $20 per hour). $108,000 20,000 yards $210,000 1) Compute the material price and quantity variances for the jogging suits. 2) Compute the labour rate variance and labour efficiency variance for jogging suits. 1 2 3 AHX AR AH X SR SH X SR 4 5 6 7 8 9 10 11 12 Labour Rate Variance Labour Efficiency Variance 13 14 15 Total Variance 16 17 18 19 20 21