Question
The following data for a pottery company pertain to the production of 2,000 clay pots during July. Direct Materials (all materials purchased were used): Standard
The following data for a pottery company pertain to the production
of 2,000 clay pots during July.
Direct Materials (all materials purchased were used):
Standard cost: $2.00 per kilogram of clay
Total actual cost: $10,640
Standard cost allowed for units produced was $12,000
Materials quantity variance was $800 favourable
Direct Manufacturing Labour:
Standard cost is 2 pots per hour at $24.00 per hour
Actual cost per hour was $24.50
Actual labour was 1028 hours
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a. What is the standard direct material amount per pot (in Kilograms)?
b. What is the materials price variance?
None of the other answers are correct
$1,040 favourable
$560 unfavourable
$800 unfavourable
$800 favourable
$560 favourable
c. What is the labour efficiency variance?
$500 unfavourable
$672 favourable
$672 unfavourable
None of the other answers are correct
$28 favourable
$500 favourable
d. What is the labour rate variance?
$486 favourable
$672 unfavourable
None of the other answers are correct
$186 favourable
$486 unfavourable
$514 favourable
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