Reference no: EM133097104
Question - Half moon Manufactures fibreglass paddleboards. The standard cost of direct materials and direct manufacturing labour is $126.8 per board. This includes 20 kilograms of direct materials, at the budgeted price of $4 per kilogram, and 4 hours of direct manufacturing labour, at the budgeted rate of $11.70 per hour. Following are additional data for the month of July Data available:
Units completed 6,300 Units
Direct Material Purchases 200,000 Kilograms
Cost of direct material purchase 340,000
Actual direct manufacturing labour hours 31,000 hours
Actual direct labour cost 347,200
Direct materials efficiency variance 12,000 U
Required -
1. Compute direct manufacturing labour variances for July.
2. Compute the actual number of kilograms of direct materials used in production in July.
3. Calculate the actual price per kilograms of direct materials purchased.
4. Calculate the direct materials rate variance.
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