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Question - A local manufacturing firm constructs water tanks for suburban households.
Budgeted costs for the company's basic water tank are as follows:
Standard Usage Standard Price
Direct Labour 3 hrs (per unit) $29 (per hr)
Direct Material 9 lineal metres (per unit) $4 (per mt)
Staff at the firm produced 60 tanks during the last month. Direct Labour was paid during the month was 2,944 with workers logging 93 direct labour hours. In making the 60 water tanks 500 lineal metres of direct materials was consumed which were purchased for $1,907. Calculate the total material and labour variance for the past month.
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