Reference no: EM132567278
Littrell Company produces chairs and has determined the following direct cost categories and budgeted amounts:
Standard Inputs Standard Cost
Category for 1 output per input
Direct Materials 1.00 $7.50
Direct Labour 0.30 9.00
Direct Marketing 0.50 3.00
Actual performance for the company is shown below:
Actual output: (in units) 4,000
Direct Materials:
Materials costs $30,225
Input purchased and used 3,900
Actual price per input $7.75
Direct Manufacturing Labour:
Labour costs $11,470
Labour-hours of input 1,240
Actual price per hour $9.25
Question a. What is the price variance of the direct materials?
Question b. What is the quantity variance for direct materials?
Question c. What is the price variance of the direct manufacturing labour?
Question d. What are the efficiency variances for direct manufacturing labour?