Question
The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or HoursStandard Price or RateStandard CostDirect
The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below:
Standard Quantity
or HoursStandard Price
or RateStandard
CostDirect materials7.0millilitres$0.29per millilitre$2.03Direct labour0.3hours$12.00per hour$3.60
During the most recent month, the following activity was recorded:a.27,500 millilitres of material was purchased at a cost of $0.24 per millilitre.b.All of the material was used to produce 3,000 bottles of Clean-All.c.650 hours of direct labour time was recorded at a total labour cost of $7,800.
Required:1.Compute the direct materials price and quantity variances for the month.(Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
2.Compute the direct labour rate and efficiency variances for the month.(Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)
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