Calculate direct materials and direct labour variances. E12.31 (LO 2, 3) Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of $10.00 plastic at $5 per kilogram) Direct labour (2 hours at $12 per hour) Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Actual costs for producing 2,750 units were as follows: Direct materials used Direct materials purchased (6,500 kg) 24.00 12.00 6.00 $52.00 6,050 kg $31,200 Direct labour (6,875 $68,750 hours) Variable manufacturing costs $33,000 Fixed manufacturing $18,000 costs Instructions a. Calculate the materials price variance for materials purchased. b. Calculate the materials quantity variance. c. Calculate the labour price variance. d. Calculate the labour quantity variance.

Calculate direct materials and direct labour variances. E12.31 (LO 2, 3) Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of $10.00 plastic at $5 per kilogram) Direct labour (2 hours at $12 per hour) Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Actual costs for producing 2,750 units were as follows: Direct materials used Direct materials purchased (6,500 kg) 24.00 12.00 6.00 $52.00 6,050 kg $31,200 Direct labour (6,875 $68,750 hours) Variable manufacturing costs $33,000 Fixed manufacturing $18,000 costs Instructions a. Calculate the materials price variance for materials purchased. b. Calculate the materials quantity variance. c. Calculate the labour price variance. d. Calculate the labour quantity variance.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.4P: Direct materials and direct labor variance analysis Faucet Industries Inc. manufactures faucets in a...

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