Ex$8\mathrm{.}33$ Materials and labour variances

$($L$)4,9$

At the beginning of the year, Shults Company had the

following standard cost sheet for one of its plastic products:

Direct materials $(3$ kilograms a $$10)$

$$30$

Direct labour $(2$ hrs $($a $$18)$

Standard prime cost per unit

The actual results for the year are as follows:

a Units produced: $350000$

b Materials purchased: $930000$ kilograms f$$ $$10\mathrm{.}10$

c Materials used: $925000$ kilograms

d Direct labour: $725000$ hours I $$17\mathrm{.}85.$

Required:

$1$ Compute price and usage variances for materials.

$2$ Compute the labour rate and labour efficiency

variances.