Barber Brass manufactures trumpets, trombones, tubas and other brass instruments. The following standards were developed for a line of trumpets:

During April, Barber scheduled 550 trumpets for production. However, the company produced only 525.

Barber purchased and used 3,100 kg of direct materials at a unit price of €8.50 per kg.

It used 5,500 hours of direct labour at an actual rate of €26.00 per hour.

1. Compute the standard cost per trumpet for direct materials and direct labour.

2. Compute the price variances and quantity variances for direct materials and direct labour.

3. Based on these sketchy data, what clues for investigation are provided by the variances?

Transcribed Image Text:

Direct materials Direct labour Standard inputs expected for each unit of output achieved 5 kg 10 hours Standard price per unit of input €10 per kg €25 per hour