Reference no: EM132003860

Question - A company makes table lamps, for which the following standards have been developed:

Standard Inputs Expected for Each Unit of Output

Direct materials 20 kilograms

Direct labour 6 hours

Standard Price Expected per Unit of Output

Direct materials $2 per kilogram

Direct labour $8 per hour

During January, production of 100 lamps was expected, but 110 lamps were actually completed.

Direct materials purchased and used were 2,100 kilograms at an actual price of $ 2.20 per kilogram.

Direct labour cost for the month was $ 5,310, and the actual pay per hour was $ 9.00.

The direct-labour efficiency variance for the month of January is

a) $ 70 favourable

b) $ 560 favourable.

c) $ 560 unfavourable

d) $ 630 favourable

e) $ 630 unfavourable

The direct-material price variance for January is

a) $ 20 favourable

b) $ 420 unfavourable.

c) $ 420 favourable.

d) $ 400 unfavourable.

e) $ 400 favourable