The Grayson Company uses standard costs to account for its production of a specialty cleaning product called Green Clean. The standard cost of materials and direct labour to produce one bottle of Green Clean is as follows:

Both material A and material B are added at the start of the process. Production data for June 2016 are as follows:
a. Beginning work in process, 5,000 units, 25% complete.
b. Started during June, 18,000 units.
c. Ending work in process, 6,000 units, 60% complete.
d. No units were spoiled.
e. 28,000 litres of material A was issued to production.
f. 12,000 litres of material B was used during June.
g. Direct labour worked totalled 4,800 hours at a cost of $50,000 for the month.
Required:
Determine all of the material and labour variances possible from the preceding data for the month of June.

Transcribed Image Text:

Material A.. Material B.. Direct labour...... 15 litres at $0.80 per litre 0.5 litres at $200 per litre $ 120 1.00 0.25 hours at $10.00 per hour 2.50 ....