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The Bridgeport Chemical Manufacturing Company produces two primary chemical products to be used as base ingredients for a variety of products. The 2022 budget for

The Bridgeport Chemical Manufacturing Company produces two primary chemical products to be used as base ingredients for a variety of products. The 2022 budget for the two products (in thousands) was as follows:

LX-4

ABC-8

Total

Level of production in litres

2,200

2,200

4,400

Direct materials

$5,500

$6,900

$12,400

Direct labour

3,300

3,300

6,600

Total direct manufacturing cost

$8,800

$10,200

$19,000

The following planning assumptions were used for the budget: (1) a direct materials yield of 96%, and (2) a direct labour rate of $6 per hour. The actual results for 2022 were as follows (in thousands):

LX-4

ABC-8

Total

Total litres produced

2,090

2,410

4,500

Direct materials

$5,016.00

$7,870.00

$12,886.00

Direct labour

3,465.00

4,290.00

7,755.00

Total direct manufacturing cost

$8,481.00

$12,160.00

$20,641.00

The actual production yield was 95% for LX-4 and 94% for ABC-8. The direct labour cost per hour for both products was $6.50.

Calculate for product ABC-8: (1) the direct labour rate variance, and (2) the direct labour efficiency variance. (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 5,275. Enter answers in thousands.)

(1)

The direct labour rate variance

$enter a dollar amount

select an option FavourableUnfavourableNeither favourable nor unfavourable

(2)

The direct labour efficiency variance

$enter a dollar amount

select an option Neither favourable nor unfavourableFavourableUnfavourable

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