Marion Ltd produces fabric bags. Price and quantity standards for the direct costs of production are:...

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Marion Ltd produces fabric bags. Price and quantity standards for the direct costs of production are: Direct material 2 metres of fabric at $7.25 per metre 20 minutes at $33 per hour Direct labour During March: • 420 bags were produced. • 836 metres of fabric was used at a cost of $6,122 • The direct labour cost incurred was S4,623 for 136 hours Calculate Direct Material price and usage variances and the Direet Labour rate and efficiency variances for March. What does each of these variances mean? Marion Ltd produces fabric bags. Price and quantity standards for the direct costs of production are: Direct material 2 metres of fabric at $7.25 per metre 20 minutes at $33 per hour Direct labour During March: • 420 bags were produced. • 836 metres of fabric was used at a cost of $6,122 • The direct labour cost incurred was S4,623 for 136 hours Calculate Direct Material price and usage variances and the Direet Labour rate and efficiency variances for March. What does each of these variances mean?

Answer rating: 100% (QA)

Direct Material Price VarianceMPV The difference between actual price incurred and the standard pric... View the full answer