Refer to the data in Exercise 10-9. Assume that instead of producing 3,000 bottles of Clean-All during the month, the company produced only 2,000 bottles, using 16,000 millilitres of material. (The rest of the material purchased remained in raw materials inventory.)

Required:
Compute the direct materials price and quantity variances for the month.

Data from in exercise 10-9.

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: 20,000 mi llilitres of material was purchased at a cost of $0.25 per millilitre. All of the material was used to produce 3,000 bottles of Clean-All. 625 hours of direct labour time was recorded at a total labour cost of $10,000.

Transcribed Image Text:

Direct materials. Direct labour... Standard Quantity or Hours 6.0 mL 0.2 hours Standard Price or Rate $0.20 per mL $15.00 per hour Standard Cost $1.20 $3.00