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The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Price or Rate Standard Quantity or Hours 7.0 millilitres 0.4 hours Standard Cost $1.96 $ 0.28 per millilitre. $12.00 per hour $4.80 Direct materials Direct labour During the most recent month, the following activity was recorded: a. 21,500 millilitres of material was purchased at a cost of $0.23 per millilitre. b. All of the material was used to produce 3,000 bottles of Clean-All. c. 700 hours of direct labour time was recorded at a total labour cost of $8,400. Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Mater price ariance Materials quantity variance $ $

The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Price or Rate Standard Quantity or Hours 7.0 millilitres 0.4 hours Standard Cost $1.96 $ 0.28 per millilitre. $12.00 per hour $4.80 Direct materials Direct labour During the most recent month, the following activity was recorded: a. 21,500 millilitres of material was purchased at a cost of $0.23 per millilitre. b. All of the material was used to produce 3,000 bottles of Clean-All. c. 700 hours of direct labour time was recorded at a total labour cost of $8,400. Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Mater price ariance Materials quantity variance $ $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or Hours Direct materials. Direct labour 7.0 millilitres 0.4 hours During the most recent month, the following activity was recorded: a. 21,500 millilitres of material was purchased at a cost of $0.23 per millilitre. b. All of the material was used to produce 3,000 bottles of Clean-All. c. 700 hours of direct labour time was recorded at a total labour cost of $8,400. Materials price variance Materials quantity variance Standard Price or Rate $ 0.28 per millilitre $12.00 per hour Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) $ $ Standard Cost $1.96 $4.80
Transcribed Image Text:The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or Hours Direct materials. Direct labour 7.0 millilitres 0.4 hours During the most recent month, the following activity was recorded: a. 21,500 millilitres of material was purchased at a cost of $0.23 per millilitre. b. All of the material was used to produce 3,000 bottles of Clean-All. c. 700 hours of direct labour time was recorded at a total labour cost of $8,400. Materials price variance Materials quantity variance Standard Price or Rate $ 0.28 per millilitre $12.00 per hour Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) $ $ Standard Cost $1.96 $4.80
2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance $ 0 None U
Transcribed Image Text:2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance $ 0 None U
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