The following standard cost card is available for product S141.

 

Last month, 12,580 units of S141 were produced at a cost of $24,800 for direct materials and $69,064 for direct labour. A total of 33,513 millilitres of direct materials were used. Total direct labour hours amounted to 3,774 hours. During the same period, 34,000 millilitres of direct material were purchased for $25,160. The company€™s policy is to record materials price variances at the time materials are purchased.

Required:

A.What is the total standard cost for direct materials and direct labour for the output this period?

B. What was the direct materials price variance?

C. What was the direct materials efficiency variance?

D. What was the direct labour price variance?

E. What was the direct labour efficiency variance?

F. Identify any variances that are material (greater than 10% of total direct cost at standard). Discuss whether you would investigate these variances.

Transcribed Image Text:

Quantity Standard 2.4 ml per unit 0.25 hours per unit Price Standard $0.75 per ml $18.00 per hour Direct materials Direct labour