Lexiplex Switches Corporation is a low-tension switch manufacturing company. Lexiplex manufactures rotary switches, micro switches and toggle switches. Lexiplex produces and sells the switches in sets. Each set contains 10 switches. Lexiplex has a standard cost system and has set the following standards for each set of switches:

The company’s cost records for July are given below.

The following additional information is available:
• During July, Lexiplex purchased 70,000 kg of raw materials at a cost of £402,500.
• The total direct labour cost incurred during July for all three types of switches amounted to £163,625.
• There was no work-in-progress inventory on 1 July.
• The raw materials used to manufacture all three types of switches are the same.

Required
1. Calculate the materials quantity variance for the company and for each type of switch individually for July. Calculate the variance in both kg and pounds.
2. Determine the materials price variance for July.
3. Calculate the labour efficiency variance for each type of switch and for the company for July. Calculate the variance in both hours and pounds.
4. Determine the labour rate variance for July.

Transcribed Image Text:

Direct materials: Rotary switches Micro switches Toggle switches Direct labour: Rotary switches Micro switches Toggle switches Standard quantity or hours 10 kg 8 kg 12 kg 2 hours 3 hours 2.25 hours Standard price or rate £6.00 per kg £6.00 per kg £6.00 per kg £8.00 per hour £8.50 per hour £9.00 per hour