The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below:

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The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below:

During the most recent month, the following activity was recorded:
a. 20,000 mi llilitres of material was purchased at a cost of $0.25 per millilitre.
b. All of the material was used to produce 3,000 bottles of Clean-All.
c. 625 hours of direct labour time was recorded at a total labour cost of $10,000.


Required:
1. Compute the direct materials price and quantity variances for the month.
2. Compute the direct labour rate and efficiency variances for the month.

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Managerial Accounting

ISBN: 9781260193275

12th Canadian Edition

Authors: Ray H. Garrison, Alan Webb, Theresa Libby

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