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QUESTION:

Rosemary Inc. bakes delicious cakes for Maple Leaf victory parties.

This year, the parties have been sporadic due to a global pandemic.

The company used the following standards:

	Standard
Direct material per unit (kg)	2.00
Material price per kg	$4.00
Labour time per unit	0.20 hrs
Direct labour rate (per hour)	$11.25

The following actual information was also available:

	Actual
Production units	35,000
Total direct material purchased (kg)	75,000
Total direct material used (kg)	72,000
Total labour time	7250 hrs
Material price per kg	$4.10
Direct labour rate (per hour)	$11.15

Use the above information to answer the following quesitons.

Compute the amount of the direct materials price variance.

HINT: remember the entry rules!

Indicate if the direct materials price variance is Favourable (enter F) or Unfavourable (enter UF).

HINT: Enter your letter without any additional spaces!

Compute the amount of the direct materials usage (efficiency) variance.

HINT: remember the entry rules!

Indicate if the direct materials usage (efficiency) variance is Favourable (enter F) or Unfavourable (enter UF).

HINT: Enter your letter without any additional spaces!

Compute the amount of the direct labour rate (price) variance.

HINT: remember the entry rules!

Indicate if the direct labour rate (price) variance is Favourable (enter F) or Unfavourable (enter UF).

HINT: Enter your letter without any additional spaces!

Compute the amount of the direct labour efficiency (or usage) variance.

HINT: remember the entry rules!

Indicate if the direct labour efficiency (usage) variance is Favourable (enter F) or Unfavourable (enter UF).

HINT: Enter your letter without any additional spaces!

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