Kopecky Inc., which produces a single product, has prepared the following standard cost sheet for one...

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Accounting

Kopecky Inc., which produces a single product, has prepared thefollowing standard cost sheet for one unit of the product:
Per unit
Direct materials (6 kg at $2.50 per kg) $15.00
Direct labour (3.1 hrs at $12 per hr) $37.20
During the month of April, the company manufactures 250 unitsand incurs the following actual costs:
Direct materials purchased and used (1,600 kgs) $4,192
Direct labour (760 hours) $8,740
Calculate the price and quantity variances for direct materials,as well as the total variance. Make sure you indicate if thevariances are favourable or unfavourable.
Calculate the rate and efficiency variances for direct labour,as well as the total variance. Make sure you indicate if thevariances are favourable or unfavourable.

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4.4 Ratings (731 Votes)

1 Total material variance Actual cost Standard cost Total material variance 4192 15250 Total material variance 442 UnFavorable 2 Actual rate 262 Per pound Direct material price variance Actual See Answer

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Kopecky Inc., which produces a single product, has prepared thefollowing standard cost sheet for one unit of the product:Per unitDirect materials (6 kg at $2.50 per kg) $15.00Direct labour (3.1 hrs at $12 per hr) $37.20During the month of April, the company manufactures 250 unitsand incurs the following actual costs:Direct materials purchased and used (1,600 kgs) $4,192Direct labour (760 hours) $8,740Calculate the price and quantity variances for direct materials,as well as the total variance. Make sure you indicate if thevariances are favourable or unfavourable.Calculate the rate and efficiency variances for direct labour,as well as the total variance. Make sure you indicate if thevariances are favourable or unfavourable.