During January, Microchem Ltd produced 1000 units of special product called Stylex, and the accounting records indicated the following: Direct material purchased Direct material used Direct labour Stylex has the following standard prime costs: Direct material: 20 kilograms a $1.35 per kilogram Direct labour hours: 4 hours @ $17 per hour Standard prime cost per unit 36000 kilograms @ $1.38 per kilogram 19000 kilograms 4200 hours @ $18 per hour Required: 1 Calculate the total standard direct material costs and direct labour costs for January. Direct material price variance. Direct material quantity variance. Direct labour rate variance. $27.00 68.00 $95.00 2 For the month of January, calculate the following variances, indicating whether each is favourable or unfavourable: Direct labour efficiency variance.
During January, Microchem Ltd produced 1000 units of special product called Stylex, and the accounting records indicated the following: Direct material purchased Direct material used Direct labour Stylex has the following standard prime costs: Direct material: 20 kilograms a $1.35 per kilogram Direct labour hours: 4 hours @ $17 per hour Standard prime cost per unit 36000 kilograms @ $1.38 per kilogram 19000 kilograms 4200 hours @ $18 per hour Required: 1 Calculate the total standard direct material costs and direct labour costs for January. Direct material price variance. Direct material quantity variance. Direct labour rate variance. $27.00 68.00 $95.00 2 For the month of January, calculate the following variances, indicating whether each is favourable or unfavourable: Direct labour efficiency variance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:10.31 During January, Microchem Ltd produced 1000 units of special product called Stylex, and the
accounting records indicated the following:
Pg. 5
Direct material purchased
Direct material used
Direct labour
36000 kilograms @ $1.38 per kilogram
19000 kilograms
4200 hours @ $18 per hour
Stylex has the following standard prime costs:
Direct material: 20 kilograms a $1.35 per kilogram
Direct labour hours: 4 hours $17 per hour
Standard prime cost per unit
$27.00
68.00
$95.00
Required:
1 Calculate the total standard direct material costs and direct labour costs for January.
Direct material price variance.
Direct material quantity variance.
Direct labour rate variance.
Direct labour efficiency variance.
2 For the month of January, calculate the following variances, indicating whether each is favourable or
unfavourable:
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