EXERCISE 10–9 Material and Labour Variances [LO2, LO3] The direct materials and direct labour… 1 answer below »EXERCISE 10–9 Material and Labour Variances [LO2, LO3] The direct materials and direct labour… 1 answer below »

  EXERCISE 10–9 Material and Labour Variances [LO2, LO3]

The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below:

 

 

During the most recent month, the following activity was recorded:

a.       20,000 millilitres of material was purchased at a cost of $0.20 per millilitre.

b.       All of the material was used to produce 3,000 bottles of Clean-All.

c.       625 hours of direct labour time was recorded at a total labour cost of $7,500. Required:

1.              Compute the direct materials price and quantity variances for the month.

2.              Compute the direct labour rate and efficiency variances for the month.