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.

Transcribed Image Text:

Direct Materials Direct Labour 125 hours Standard quantity or hours per unit Standard price or rate Standard cost per unit. ? kilograms ............ $10 per hour $12.50 ? per kilogram