Compute the material efficiency variance

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Reference no: EM131881875

Problem

Jay Levitt Company budgeted the following cost standards for the current year:

Direct materials (2 kg of plastic at $5 per kilogram) $10.00
Direct labour (2 hours at $12 per hour) 24.00
Variable manufacturing overhead 10.50
Fixed manufacturing overhead 7.05
Total standard cost per unit $51.55

Actual costs for producing 2,660 units were as follows:

Direct materials used 5,810 kg
Direct materials purchased (6,610 kilograms) $30,406
Direct labour (6,950 hours) $66,720
Variable manufacturing costs $32,900
Fixed manufacturing costs $17,600

Required

Calculate the material price variance for materials purchased.

Calculate the material efficiency variance.

Calculate the labour price variance.

Calculate the labour efficiency variance.

Reference no: EM131881875

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