The following information has been gathered from the KLP company's static budget for the most recent months.

• Direct materials per unit of product 5 pounds *$1.50per pound.
• Direct labour per unit of product 45 hour*$20 per hour.
• Variable manufacturing overhead $15 per direct labour hour

The actual activity of the most recent month:

• 10,000 pounds direct material purchased at a cost of $17,000.
• 9,504 pounds of direct material used to produce 1728 units of product.
• 864 total direct labour hours were used and total payment was $18,144
• Variable manufacturing overhead costs $13,824.

Requirements: Compute 1. Materials purchase price variance, 2. Materials quantity variance, 3. Direct-labor rate (price) variance, 4. Direct-labor quantity (efficiency) variance, 5. Variable manufacturing overhead rate variance, 6.Variable manufacturing overhead efficiency variance.

Answer rating: 100% (QA)

Answer Step by Step Explanation Step 1 Material price variance Actual price ... View the full answer