Reference no: EM132665671

Standard quantity of materials 5 kg per batch

Standard cost per kg $12

Standard direct labour hours 1.5 per batch

Standard wage rate per hour                  $25

Direct materials purchased                 10,000 kg

Cost of direct materials purchased per kg   $10

Direct materials consumed to produce 2,000 batches of goods (Actual Production) 8,000 kg

Actual direct labour hours to produce 2,000 batches of goods       2,950

Actual direct labour cost per hour      $25.50

Planned Production for June          2,000 batches

Estimated variable Manufacturing Overhead  $42,000

Estimated fixed Manufacturing Overhead   $120,000

Actual variable Manufacturing Overhead       $45,000

Actual fixed Manufacturing Overhead      $123,000

Problem 1: Calculate the price and efficiency variances for materials and labour and the total direct labour variance for June.