The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity Standard Price or Rate $0.20 per millilitre $15.00 per hour Direct materials Direct labour During the most recent month, the following activity was recorded: a. 20,000 millilitres of material was purchased at a cost of $0.25 per millilitre. b. All of the material was used to produce 3,000 bottles of Clean-All. c. 625 hours of direct labour time was recorded at a total labour cost of $10,000. or Hours 6.0 millilitres 0.2 hours Materials price variance Materials quantity variance 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 $1.20 $3.00 Labour rate variance Labour efficiency variance Activate Window: 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).)
The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity Standard Price or Rate $0.20 per millilitre $15.00 per hour Direct materials Direct labour During the most recent month, the following activity was recorded: a. 20,000 millilitres of material was purchased at a cost of $0.25 per millilitre. b. All of the material was used to produce 3,000 bottles of Clean-All. c. 625 hours of direct labour time was recorded at a total labour cost of $10,000. or Hours 6.0 millilitres 0.2 hours Materials price variance Materials quantity variance 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 $1.20 $3.00 Labour rate variance Labour efficiency variance Activate Window: 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).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Please do not give solution in image format thanku
Transcribed Image Text:The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below:
Standard Quantity
Standard Price
or Rate
$0.20 per millilitre
$15.00 per hour
Direct materials
Direct labour
During the most recent month, the following activity was recorded:
a. 20,000 millilitres of material was purchased at a cost of $0.25 per millilitre.
b. All of the material was used to produce 3,000 bottles of Clean-All.
c. 625 hours of direct labour time was recorded at a total labour cost of $10,000.
or Hours
6.0 millilitres
0.2 hours
Materials price variance
Materials quantity variance
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
$1.20
$3.00
Labour rate variance
Labour efficiency variance
Activate Window:
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).)
Activate Windows
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education