Question
You have been given the following per unit information about the production of Gillian Inc., and are asked to provide the plant manager with information
You have been given the following per unit information about the production of Gillian Inc., and are asked to provide the plant manager with information for a meeting with the vice-president of operations:
| Standard Quantity | Standard Price | Actual Quantity | Actual Price | |
| Direct materials | 5 kg | $3 / kg | 5.5 kg | $2.80 / kg |
| Direct labour | 1.5 hours | $18 / hour | 1.0 hours | $16 / hour |
Production data, both budgeted and actual, for the year are as follows:
| Description | Amount |
| Actual production (units) | 40,000 |
| Actual materials purchased and used (kg) | 220,000 |
The plant manager has asked you to calculate the following variances: direct material price variance, direct material usage variance, direct labour rate variance, and the direct labour efficiency variance. Use your work to answer the following questions.
The total direct material price variance is $_______________.
The direct material price variance is
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The total direct material usage variance is $_______________.
The direct material usage variance is
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The total labour rate variance is $_______________.
The direct labour rate variance is
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The total labour efficiency variance is $_______________.
The direct labour efficiency variance is
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