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.

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Definitions:

Cross-Functional

An approach involving collaboration among people from different departments or areas of expertise within an organization, aiming to achieve a common goal.

Task Forces

Special groups set up to achieve a specific goal or to work on a particular problem, often within a limited time frame.

Virtual Team Formation

The process of assembling a group of individuals from various locations to work together through electronic communication and collaboration tools.

Lobbying

The act of attempting to influence the decisions of government officials or legislative bodies through advocacy, communication, or pressure.