Strathcona Polycontainers manufactures plastic rain barrels. At the start of May 2023, the following budgeted amounts...

 

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Strathcona Polycontainers manufactures plastic rain barrels. At the start of May 2023, the following budgeted amounts (based on a standard cost system) related to the manufacture of one unit of its econo-barrel: Direct Materials: Direct Labor: 3.0 square metres (m²) $15.00 per square metre (S/m²) Budgeted production for May 2023 was Actual results for May 2023 were as follows: Units produced: Direct materials purchased and consumed: Direct labor: Required: 5,000 barrels. 5,000 barrels 6,900 hours at a rate of 1.25 direct labor hours $20.00 per direct labour hour 17,000 m² at cost of $21.00 per direct labour hour $246,500 1 Determine the direct material price and usage variances. Indicate whether favorable of unfavorable using drop-down selection. Direct material price variance: Direct material usage variance: 2 Identify two possible causes for each of the variances determined. Cause #1 Direct material price variance: Direct material usage variance: Cause #2 Strathcona Polycontainers manufactures plastic rain barrels. At the start of May 2023, the following budgeted amounts (based on a standard cost system) related to the manufacture of one unit of its econo-barrel: Direct Materials: Direct Labor: 3.0 square metres (m²) $15.00 per square metre (S/m²) Budgeted production for May 2023 was Actual results for May 2023 were as follows: Units produced: Direct materials purchased and consumed: Direct labor: Required: 5,000 barrels. 5,000 barrels 6,900 hours at a rate of 1.25 direct labor hours $20.00 per direct labour hour 17,000 m² at cost of $21.00 per direct labour hour $246,500 1 Determine the direct material price and usage variances. Indicate whether favorable of unfavorable using drop-down selection. Direct material price variance: Direct material usage variance: 2 Identify two possible causes for each of the variances determined. Cause #1 Direct material price variance: Direct material usage variance: Cause #2

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SOLUTION To determine the direct material price and usage variances well need to compare the actual ... View the full answer