ueeze Juice Ltd produces orange juice (OJ) sold in litres. Recently the

company adopted the following standards for one litre of OJ:

Direct materials (128 grams @$0.046) $5.888

Direct labour (0.038 hr @ $12.00 ph)

$0.456

Standard Prime Cost

$6.344

uring the first week of operations the company had the

following actual results:

1.

Litre units produced; 52,000

2.

Grams of materials purchased: 6,420,000 grams @ 0.047

3.

No opening or closing stocks of raw materials

4

.

Direct Labour; 2000 hours at $12.50 per hour.

1.Calculate the price and usage variances for

direct materials

2. Calculate the rate variance & efficiency

variance for direct labour