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Part (a): Toddca planned to produce 3,000 units of its single product, Terrgam, during November. The standard specifications for one unit of Terrgam include six kilograms of material at $0.30 per kilogram. Actual production in March was 3,100 units of Terrgam. The accountant computed a favourable materials price variance of $380 and an unfavourable materials quantity variance of $120.
Question 1: Based on these data, how many kilograms of material were used in the production of Terrgam during March?
Part (b): A review of skilled engineering labour rates and variances at Kumisomo Industries revealed the following: The actual wage per hour was $15, as opposed to $13 standard. Actual labour hours per unit produced were 1.2 hours compared with 1.4 hours at standard. During March, 1,000 units were produced.
Question 2: What are the March direct labour variances?
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