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 millilitres of material was purchased at a cost of $0.20 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 $7,500.
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.

Transcribed Image Text:

Standard Quantity Standard or Hours 60 millilitres 0.2 hours Price Standard or Rate $0.25 per militre $12.00 per hour Cost $150 Direct materials.. Direct labour... . $2.40 .........