question:

Use your spreadsheet to show how the solution will change if the following information changes: standard direct material price is $0.885 per kilogram and standard direct labour rate is $36. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).)

Can the Can Ltd manufactures recyclable soft drink cans. A unit of production is a box of 12 cans. The following standards have been set by the production engineering staff and the factory accountant: Direct material Quantity: 4 kilograms Price: $0.90 per kilogram Direct labour Quantity: 0.25 hour Rate: $33 per hour Actual material purchases amounted to 240,000 kilograms at $0.93 per kilogram. Actual costs incurred in the production of 50,000 units were as follows: Direct material Direct labour $195, 300 for 210,000 kilograms $448,500 for 13,000 hours