Question 25

Jay Levitt Company budgeted the following cost standards for the current year:

Direct materials (2 kg of plastic at $6 per kilogram)$12.00Direct labour (2 hours at $11 per hour)22.00Variable manufacturing overhead11.15Fixed manufacturing overhead6.25Total standard cost per unit$51.40

Actual costs for producing 2,740 units were as follows:

Direct materials used

5,750kgDirect materials purchased (6,800 kg)

$39,440Direct labour (6,900 hours)

$62,790Variable manufacturing costs

$32,800Fixed manufacturing costs

$17,400

Calculate the materials price variance for materials purchased.

Materials price variance$enter the materials price variance

select a type of the materials price variance

Favourable

Unfavourable

Neither favourable nor unfavourable

Calculate the materials quantity variance.

Materials

$enter the materials quantity variance

select a type of the materials quantity variance

Neither favourable nor unfavourable

Unfavourable

Favourable

Calculate the labour price variance.

(Round answer to the nearest whole dollar, e.g. 5,275.)

Labour price variance

$enter the labour price variance rounded to the nearest whole

select a type of the labour price variance

Neither favourable nor unfavourable

Unfavourable

Favourable

Calculate the labour quantity variance.

Labour quantity variance$enter the labour quantity variance

select a type of the labour quantity variance