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Case 12-67 The Kohler Chemical Manufacturing Company produces two primary chemical products to be used as base ingredients for a variety of products. The 2016 budget for the two products (in thousands) was as follows: Level of production in litres Direct materials Direct labour Total direct manufacturing cost LX-4 ABC-8 Total 1,800 1,800 3,600 $4,500 $5,625 $10,125 2,700 2,700 5,400 $7,200 $8,325 $15,525 The following planning assumptions were used for the budget: (1) a direct materials yield of 96%, and (2) a direct labour rate of $6 per hour. The actual results for 2016 were as follows (in thousands): Total litres produced Direct materials Direct labour Total direct manufacturing cost LX-4 ABC-8 Total 1,710 1,974 3,684 $4,104.00 $6,415.50 $10,519.50 2,808.00 3,276.00 6,084.00 $6,912.00 $9,691.50 S16,603.50 The actual production yield was 95% for LX 4 and 94% for ABC 8. The direct labour cost per hour for both products was $6.50. Calculate for product LX-4: (1) the direct materials price variance, and (2) the direct materials efficiency (Yield) variance. (Round answers to the nearest whole dollar, e.g. 5,275.) The direct materials price variance 126 Favourable (2) The direct materials efficiency (yield) variance 270 Favourable 111 IT + YU III Direct labour Total direct manufacturing cost 2,808.00 $6,912.00 3,276.00 $9,691.50 6,084.00 $16,603.50 The actual production yield was 95% for LX-4 and 94% for ABC-8. The direct labour cost per hour for both products was $6.50. Calculate for product LX-4: (1) the direct materials price variance, and (2) the direct materials efficiency (yield) variance. (Round answers to the nearest whole dollar, e.g. 5,275.) (1) The direct materials price variance 126 Favourable (2) The direct materials efficiency (yield) variance 270 Favourable LINK TO TEXT LINK TO TEXT Calculate for product ABC-8: (1) the direct labour rate variance, and (2) the direct labour efficiency variance. (Round answers to the nearest whole dollar, e.g. 5,275.) (1) The direct labour rate variance $ -252 Unfavourable v (2) The direct labour efficiency variance -324 Unfavourable