Reference no: EM133109939
Question - Samsung produces toy tractors. The company uses the following direct cost categories:
|
Category
|
Standard Inputs for 1 output
|
Std. Cost per input
|
|
Direct Materials
|
4.00
|
$12.50
|
|
Direct Labour
|
1.40
|
9.50
|
|
Direct Marketing
|
0.54
|
5.50
|
Actual performance for the company is shown below:
Actual output: 5,000 units
Direct Materials:
Materials costs $299,000
Input purchased and used 23,000
Actual price per input $13.00
Direct Manufacturing Labour:
Labour costs $95,000
Labour-hours of input 9,500
Actual price per hour $10.00
Direct Marketing Labour:
Labour costs $40,000
Labour-hours of input 5,000
Actual price per hour $8.00
Required - Calculate the rate and efficiency variance for the direct manufacturing labour.