The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below:Standard Quantityor HoursDirect materialsDirect labour7.0 millilitres0.4 hoursStandard Priceor Rate$ 0.26 per millilitre$12.00 per hourStandardCost$1.82$4.80During the most recent month, the following activity was recorded:a. 25,000 millilitres of material was purchased at a cost of $0.21 per millilitre.b. All of the material was used to produce 3,000 bottles of Clean-All.c. 750 hours of direct labour time was recorded at a total labour cost of $9,000.Required:1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each varlance by selecting "F" forfavourable, "U" for unfavourable, and "None" for no effect (l.e., zero variance).)Materials price varianceMaterials quantity variance2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each varlance by selecting "F" forfavourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance).)Labour rate varianceLabour efficiency variance

Material variance:The difference between the actual direct material cost and budgeted direct…

Standard Quantity or Hours Direct materials Direct labour 7.0 millilitres 0.4 hours Standard Price or Rate Standard Cost $1.82 $ 0.26 per millilitre $12.00 per hour $4.80 During the most recent month, the following activity was recorded: 25,000 millilitres of material was purchased at a cost of $0.21 per millilitre. . All of the material was used to produce 3,000 bottles of Clean-All. c. 750 hours of direct labour time was recorded at a total labour cost of $9,000.

Standard Quantity or Hours Direct materials Direct labour 7.0 millilitres 0.4 hours Standard Price or Rate Standard Cost $1.82 $ 0.26 per millilitre $12.00 per hour $4.80 During the most recent month, the following activity was recorded: 25,000 millilitres of material was purchased at a cost of $0.21 per millilitre. . All of the material was used to produce 3,000 bottles of Clean-All. c. 750 hours of direct labour time was recorded at a total labour cost of $9,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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