Saskatewan Can Company manufactures recyclable softdrink cans. A unit of production is a case of dozen cans. The following standards have been set by the productionengineering staff and the controller.
Direct Labor:
Direct Material:
Quantity, hour
Quantity, kilograms
Rate, $ per hour
Price, $ per kilogram
Actual materlal purchases amounted to kilograms at $ per kilogram. Actual costs incurred in the production of units were as follows:
Direct labor:
$ for hours
Direct material:
$ for kilograms
Required:
Use the variance formulas to compute the directmaterial price and quantity varlances, the directmaterlal purchase price varlance, and the directlabor rate and efficlency varlances. Indicate whether each varlance is favorable or unfavorable. Indlcate the effect of each varlance by selecting "Favorable" or "Unfavorable". Select "None" and enter O for no effect le zero varlance
tableDirectmaterial price variance,UnfavorableDirectmaterial quantity variance,UnfavorableDirectmaterial purchase price variance,UnfavorableDirectlabor rate variance,UnfavorableDirectlabor efficiency variance,Unfavorable
