Vulcan Supplements makes fuel additives for use in motor racing and uses a standard costing system to monitor both sales and production costs to evaluate performance. The budgeted and actual prime cost data for the past month when 50,000 litres were produced is shown below: Standard prime costs: Standard Material Input cost per unit Standard labour costs Total standard product cost per unit 0.2 litres 0.05 hour Actual costs: Units produced this period: Direct material purchased: Direct material used in production: Direct labour hours and total cost: Required: Calculate the Direct Labour Efficiency Variance 50,000 litres 20,000 10,200 2,375 $3.50 per litres $48.00 per hour Total cost: $ 72,000 Cost per litre: $3.60 Total cost: $ 114,570 $ 0.70 $ 2.40 $ 3.10 Note: You MUST indicate whether the variance is Unfavourable or Favourable by entering enter a U or an F after entering a positive number as the variance. e.g. If you wish to enter 1000 as the variance and it is favourable, enter 1000F (use upper case letters)

Vulcan Supplements makes fuel additives for use in motor racing and uses a standard costing system to monitor both sales and production costs to evaluate performance. The budgeted and actual prime cost data for the past month when 50,000 litres were produced is shown below: Calculate the Direct Labour rfficiency Variance Note: You MUST indicate whether the variance is Unfavourable or Favourable by entering effif r a U or an F after entering a positive number as the variance. e.g. If you wish to erity/ 1000 as the variance and it is favourable, enter 1000F (use upper case letters)