Starling Manufacturing Has Developed the Following Standards for One of Its

question 68

Essay

Starling Manufacturing has developed the following standards for one of its products.
$\begin{array}{lr}\text {SIANDARD VARIABLE COSI CARD}\\ \text {One Unit of Product}\\\text { Materials: } 5 \text { metres } \times \$ 6 \text { per metre } & \$ 30.00 \\\text { Direct labour: } 2 \text { hours } \times \$ 8 \text { per hour } & 16.00 \\\text { Variable manufacturing overhead: } 2 \text { hours } \times \$ 5 \text { per hour } & 10.00 \\\text { Total standard variable cost per unit } & \$ 56.00\end{array}$

The company records materials price variances at the time of purchase.

The following activity accured during the month of December:

$\begin{array} { l l } \text { Materials purchased: } & 5,200 \text { metres costing } \$ 29,900 \\ \text { Materials used: } & 4,750 \text { metres } \\ \text { Units produced: } & 1,000 \text { urits } \\ \text { Direct labour: } & 2,100 \text { hours costing } \$ 17,850 \end{array}$
a.Calculate the direct materials price variance.
b.Calculate the direct materials usage variance.
c.Calculate the direct labour rate variance.
d.Calculate the direct labour efficiency variance.