Calculate direct materials and direct labour variances. E12.31 (LO 2, 3) Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of $10.00 plastic at $5 per kilogram) Direct labour (2 hours at $12 per hour) Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Actual costs for producing 2,750 units were as follows: Direct materials used Direct materials purchased (6,500 kg) 24.00 12.00 6.00 $52.00 6,050 kg $31,200 Direct labour (6,875 $68,750 hours) Variable manufacturing costs $33,000 Fixed manufacturing $18,000 costs Instructions a. Calculate the materials price variance for materials purchased. b. Calculate the materials quantity variance. c. Calculate the labour price variance. d. Calculate the labour quantity variance.
Calculate direct materials and direct labour variances. E12.31 (LO 2, 3) Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of $10.00 plastic at $5 per kilogram) Direct labour (2 hours at $12 per hour) Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Actual costs for producing 2,750 units were as follows: Direct materials used Direct materials purchased (6,500 kg) 24.00 12.00 6.00 $52.00 6,050 kg $31,200 Direct labour (6,875 $68,750 hours) Variable manufacturing costs $33,000 Fixed manufacturing $18,000 costs Instructions a. Calculate the materials price variance for materials purchased. b. Calculate the materials quantity variance. c. Calculate the labour price variance. d. Calculate the labour quantity variance.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Calculate direct materials and direct labour variances.
E12.31 (LO 2, 3) Jay Levitt Company budgeted the following cost standards for the
current year:
Direct materials (2 kg of $10.00
plastic at $5 per kilogram)
Direct labour (2 hours at
$12 per hour)
Variable manufacturing
overhead
Fixed manufacturing
overhead
Total standard cost per
unit
24.00
Actual costs for producing 2,750 units were as follows:
Direct materials used
Direct materials
purchased (6,500 kg)
Direct labour (6,875
hours)
Variable
manufacturing costs
12.00
6.00
$52.00
6,050 kg
$31,200
$68,750
$33,000
Fixed manufacturing $18,000
costs
Instructions
a. Calculate the materials price variance for materials purchased.
b. Calculate the materials quantity variance.
c. Calculate the labour price variance.
d. Calculate the labour quantity variance.
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