Problem
Information relating to direct materials and direct labour during the last period at Greencorn Company is as follows:
1) Flexible budget for direct materials totaled $220,000
2) Flexible budget for materials used in production was for 50,000 units @ 2 kg per unit
3) Materials purchased and used during the month were 95,000 kg @ $2.30 per kg
4) Actual direct labour hours: 5,100
5) Direct labour efficiency variance: $1,600 unfavourable
6) Direct labour price variance: $2,550 favourable
7) Total actual direct labour cost: $160,650
Task
1) What was the Materials Price Variance for the month?
2) What was the Materials Efficiency Variance for the month?
3) What was the actual direct labour hourly rate?
4) What was the standard direct labour hourly rate?
5) What was the standard direct labour hours allowed for the number of units produced?