QUESTION

The following materials standards have been established for a particular product:

Standard quantity per unit of output	3.6 metre
Standard price	$10.20 per metre

The following data pertain to operations concerning the product for the last month:

Actual materials purchased	7,100 metres
Actual cost of materials purchased	$68,515
Actual materials used in production	6,600 metres
Actual output	1,780 units

The following labour standards have been established for a particular product:

Standard labour hours per unit of output	2.8 hours
Standard labour rate	$11.50 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked	6,900 hours
Actual total labour cost	$80,385
Actual output	2,300 units

Required: a) What was the materials price variance for the month? b) What was the materials quantity variance for the month?

c) What was the labour rate variance for the month? d) What was the labour efficiency variance for the month?