Assignment 7 (Ch 10) Sx My Grades MoM C D erto.mheducation.com/mLtpx?.-094277396

Question

Assignment 7 (Ch 10) Sx My Grades MoM C D erto.mheducation.com/mLtpx?.-09427739699458777-1521426428140 value 10.00 points The direct materials and direct labour standards for one botle of Clean-All spray cleaner are given below or Hours Direct materials Direct labour70 militres $ 0 29 per mililitres $ 12.00 per hour $2.03 $3 60 0.3 hours During the most recent month, the following activity was recorded a 27,500 mililitres of material was purchased at a cost of S0.24 per millitre b. The company produced only 2,000 bottles, using 23,500 millitres of material (The rest of the mateld purchased remained in raw materials inventory) c. 650 hours of direct labour time was recorded at a total labour cost of $7,800 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 (ie, zero variance)-) Materials price variance Materials quantity variance 40

Explanation / Answer

1) Material price variance = (0.29-0.24)*27500 = 1375 Favourable

Material quantity variance = (2000*7-23500)0.29 = 2755 Unfavourable

2) Material price variance = (2.50-2.70)79050 = 15810 Unfavourable

Material quanitty variance = (20000*4-79050)*2.50 = 2375 Favourable

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