Mount Cook Company Limited manufactures working boots for men and women. The standard cost specification...
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Mount Cook Company Limited manufactures working boots for men and women. The standard cost specification sheet of the company shows the following information related to its standard costs that have been set for its new model called Comfortable Boots as Direct materials (1 kg) Direct labour (3 hours) Overhead Fixed $1.10 per direct labour hour Variable $1.30 per direct labour hour $3.90 $16.00 $24.00 S3.30 $47.20 Actual production and cost information for March, 20X4 is as follows Actual direct materials purchased Actual direct materials issued Actual output Actual cost of materials purchased Actual direct labour rate Actual direct labour hours 043 kilograms 880 kilograms 900 pairs $15 288 $8.25 per hour 2650 Actual overhead costs Fixed OH Variable OH $3000 $3300 Required: Calculate the following variances for the month of March (i) Direct material price variance. (1 mark)
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