Reference no: EM132707829

Question - The data below relate to the standards for the sole product of Marshal Corporation in August:

Standard direct material price $1.40 per kg

Standard quantity of direct material 20 kg per unit

Standard direct labour rate $17.00 per hour

Standard direct labour hour 5 hours per unit

Actual results for November are as follows:

Actual output 1,100 units

Direct material purchased 36,000 kg @ $1.76 per kg

Direct material used 19,000 kg

Direct labour 5,200 hours @ $18 per hour

Required - Calculate the following variances, indicating whether each variance is favourable or unfavourable:

(i) Direct material price variance

(ii) Direct material quantity variance

(iii) Direct labour rate variance

(iv) Direct labour efficiency variance