Problem
Jay Levitt Company budgeted the following cost standards for the current year:
Direct materials (2 kg of plastic at $5 per kilogram) $10.00
Direct labour (2 hours at $12 per hour) 24.00
Variable manufacturing overhead 10.50
Fixed manufacturing overhead 7.05
Total standard cost per unit $51.55
Actual costs for producing 2,660 units were as follows:
Direct materials used 5,810 kg
Direct materials purchased (6,610 kilograms) $30,406
Direct labour (6,950 hours) $66,720
Variable manufacturing costs $32,900
Fixed manufacturing costs $17,600
Required
Calculate the material price variance for materials purchased.
Calculate the material efficiency variance.
Calculate the labour price variance.
Calculate the labour efficiency variance.