Reference no: EM133079321

Question - Sucre Limited is a wodget manufacturer based in Fredericton. The standard direct labour hours to manufacture one wodget unit is 5 hours, while the standard direct labour cost per unit is $100. The standard direct labour rate is $20 per hour. The hard-working cost accounting team at Sucre Limited determined that in November, there was a labour efficiency variance of $7,000 F, a materials price variance of $2,150 F, and a total materials variance of $500 U. Also in November, Sucre Limited bought 9,500 kilograms of direct materials for $45,125. This produced 2,000 wodget units. Direct labour costs were determined to be $200,000.

Required -

(a) Determine the actual direct labour cost per hour for November as well as the labour rate variance.

(b) Determine the standard price per kilogram, standard quantity allowed for wodget material for November production, and standard quantity per kilogram of product.