The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given...
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The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or Hours 5. O millilitres 0.5 hours Standard Price Standard or Rate $ 0. 27 per millilitre $12. 00 per hour Cost $1. 35 $6. 00 Direct materials Direct labour During the most recent month, the following activity was recorded: a. 26,500 millilitres of material was purchased at a cost of $0.22 per millilitre. b. All of the material was used to produce 2,000 bottles of Clean-All. c. 600 hours of direct labour time was recorded at a total labour cost of $7.200. Assume that instead of producing 2,200 bottles of Clean-All during the month, the company produced only 2,000 bottles, using 22,500 millilitres of material. (The rest of the material purchased remained in raw materials inventory.) Required. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or Hours 5. O millilitres 0.5 hours Standard Price Standard or Rate $ 0. 27 per millilitre $12. 00 per hour Cost $1. 35 $6. 00 Direct materials Direct labour During the most recent month, the following activity was recorded: a. 26,500 millilitres of material was purchased at a cost of $0.22 per millilitre. b. All of the material was used to produce 2,000 bottles of Clean-All. c. 600 hours of direct labour time was recorded at a total labour cost of $7.200. Assume that instead of producing 2,200 bottles of Clean-All during the month, the company produced only 2,000 bottles, using 22,500 millilitres of material. (The rest of the material purchased remained in raw materials inventory.) Required. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance
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Materials Price Variance Materials Price Variance Standard Price Actual Price ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
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