Markman Industries employs a standard cost system. It has established the followingstandards for the prime costs of its air rifle product line:Standard quantityStandard priceStandard costDirect materials$21.80/kg$ 87.204 kg0.5 direct labourhours (DLH)Direct labour$20.00/DLH4.00$ 91.20During November, Markman purchased 13,000 kg of direct materials at a total cost of$295,100. The total factory wages for November were $38,000, 90% of which were fordirect labour.Markman manufactured 3,500 air rifles during November, using 13,500 kg of directmaterials and 1,900 direct labour hours.Required:a) What was the direct labour efficiency variance for November?b) Over the past year, Markman's management team attempted to reduce the numberof customer complaints relating to the product by sourcing higher-quality directmaterials from a different supplier. Explain the effect this has had on the directmaterial variances. Do you believe this has also impacted the direct labourvariances? Explain.

Given data, Standard quantity Standard price Standard cost Direct materials 4 kg…

Answered: Markman Industries employs a standard…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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