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Swim-Time uses standard cost accounting. In August, Swim-Time installed 10 pools at a total variable cost of $90,000 after it had budgeted $82,000. The direct

  1. Swim-Time uses standard cost accounting. In August, Swim-Time installed 10 pools at a total variable cost of $90,000 after it had budgeted $82,000. The direct material standard is 60 cubic meters of concrete to build one pool at a standard price of $100 per cubic meter. The direct labour standard is 110 hours at $20/hour. Total labour time in August was 1,000 hours at a total cost of $27,000. Total direct material cost was $63,000 and the price of concrete for the month was $105 per cubic meter.

Compute the price and efficiency (quantity) variances for direct labour and direct materials. Label the variances as favorable (F) or unfavorable (U).

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