Trafalgar Producers Ltd. operates a standard costing system, which provides the company with cost information that is virtual to its budget preparation each period. One of the products produce by the company is "Work Right". At the end of September 2016, the following information was extracted from the company's records:

Details Standard cost per unit

$

Direct raw materials 20 liters at $40 each 800

Direct labour 3 hours at $150 each 450

Total 1250

Actual results for the month:

Opening stock direct raw materials - 20,000 liters

Production - 5,000 liters

Direct raw materials purchased was 90,000 liters valued at $3,420,000

Closing stock of direct raw materials 8,000 liters

Direct labour 15,200 hours at a cost of $2,219,200

1.Direct raw material price variance is $:

2.Direct raw material usage variance is $:

3.Direct labour rate variance is $:

4.Direct labour efficiency variance

Answer rating: 100% (QA)

To calculate the variances we need to use the standard cost information and the actual results provi... View the full answer