Reference no: EM132579468

The Monroe corporation manufactures lamps. it has set up the following standards per finished unit for direct materials and direct manufacturing labor

Direct material :10 lb at Rs .4.50 per l b . Rs.45.00

Direct manufacturing labor:0.5 hour at Rs . 30 per Rs.15.00

The number of finished units budgeted for January 2020 was 10,000:9850 units were actually produced

Actually results in January 2020 were as follow:

Direct materials :98,055 lb .used

Direct manufacturing labor: 4,900 hours Rs 154,350

Assume that there as no beginning inventory of either direct materials or finished units. During the month , material purchased amounted to 100,000 at a cost of Rs 465,000 .input price variances are isolated upon purchased . Input-efficiency variance are isolated at the time of usage .

Require:

Question 1: compute the January 2020 price and efficiency variances of direct materials and direct manufacturing labor.

Question 2: prepare journal entries to record the variances in requirement 1.

Question 3: comment on the January 2020 price and efficiency variance of Monroe Corporation.

Question 4: Why might Monroe calculate direct material price variances and efficiency variances with reference to different point in time?