The budgeted and standard data for productivity include the following

Direct labour
Ten employees work for 45 hour a week. The standard rate of pay is ksh 4 per hour. Output per hour is 40 kg of the product.

Direct material
Material          quantity kg       price per kg
X                          60                   2.00
Y                         40                     1.00
Z                        100                    1.40
From this standard matrix 180 kg of product is expected
Actual data for first week in April were as follows
Hours worked    45
Rate of pay ksh 4 per hour
Overhead incurredksh 5400
Output1980 kg
Production and consumption of materials were as follows:
Material     Quantity (kg)
X                  700
Y                   440
Z                  1120

Required
(a)Calculate the following direct material variance for each material (10mks)
i.Total
ii. Price
iii. Usage
iv. mix
(b)Calculate the direct labor efficiency variance (10mks)

Answer rating: 100% (QA)

Part A 1 Direct material total variance will be 100 favorable ii Direct material price variance ... View the full answer