Reference no: EM132792180

Question - Use the information below to answer the following question(s).

Tractor Corporation produces toy tractors. The company uses the following direct cost categories:

Category Standard Inputs for 1 output Std. Cost per input

Direct Materials 4.00 $12.50 9.50

Direct Labour 1.40 5.50

Direct Marketing 0.54

Actual performance for the company is shown below:

Actual output: 5,000 units

Direct Materials:

Materials costs $299,000 23,000

Input purchased and used $13.00

Actual price per input

Direct Manufacturing Labour:

Labour costs $95,000

Labour-hours of input 9,500

Actual price per hour $10.00

Direct Marketing Labour:

Labour costs $40,000

Labour-hours of input 5,000

Actual price per hour $8.00

Required -

1) What is the combined total of the flexible budget variances?

2) What is the rate variance of the direct materials?

3) What is the efficiency variance for direct materials?

4) What is the rate variance of the direct manufacturing labour, and the direct marketing labour, respectively?