Question

Jay Levitt Company budgeted the following cost standards for the current year:

Direct materials (2 kg of plastic at $5 per kilogram)		$10.00
Direct labour (2 hours at $12 per hour)		24.00
Variable manufacturing overhead		11.45
Fixed manufacturing overhead		7.05
Total standard cost per unit		$52.50

Actual costs for producing 2,710 units were as follows:

Direct materials used		5,990	kg
Direct materials purchased (6,440 kg)		$30,912
Direct labour (6,820 hours)		$68,882
Variable manufacturing costs		$32,300
Fixed manufacturing costs		$17,600

Calculate the materials price variance for materials purchased.

Materials price variance

$enter the materials price variance

select a type of the materials price variance FavourableUnfavourableNeither favourable nor unfavourable

Calculate the materials quantity variance.

Materials quantity variance

$enter the materials quantity variance

select a type of the materials quantity variance Neither favourable nor unfavourableUnfavourableFavourable

Calculate the labour price variance. (Round answer to the nearest whole dollar, e.g. 5,275.)

Labour price variance

$enter the labour price variance rounded to the nearest whole

select a type of the labour price variance Neither favourable nor unfavourableUnfavourableFavourable

Calculate the labour quantity variance.

Labour quantity variance

$enter the labour quantity variance

select a type of the labour quantity variance

Answer 1