Question

Talia Company produces a single product. The company has set standards as follows for materials and labour:
During the past month, the company purchased 3,000 kilograms of direct materials at a cost of $8,250. All of this material was used in the production of 700 units of product. Direct labour cost totalled $6,825 for the month. The following variances have been computed:
Materials quantity variance . . . . . . . . . . . . . . . . . . . . . . $ 600 U
Total materials variance . . . . . . . . . . . . . . . . . . . . . . . . . $ 150 F
Labour efficiency variance. . . . . . . . . . . . . . . . . . . . . . . $2,250 F
Required:
1. For direct materials:
a. Compute the standard price per kilogram for materials.
b . Compute the standard quantity allowed for materials for the month ’s production.
c. Compute the standard quantity of materials allowed per unit of product.
2. For direct labour:
a. Compute the actual direct labour cost per hour for the month.
b. Compute the labour rate variance.


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  • CreatedJuly 08, 2015
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