Sterling Manufacturing Has Developed the Following Standards for One of Its

question 108

Essay

Sterling Manufacturing has developed the following standards for one of its products. Materials: $5 \mathrm{~m} \times \$ 6$ per metre $\quad \$ 30$
Direct labour: 2 hours $\times \$ 8$ per hour $\quad 16$ The company records materials price variances at the time of purchase.
The following activity occurred during the month of December: $\begin{array}{ll}\text { Materials purchased: } & 5,200 \mathrm{~m} \text { costing } \$ 29,900 \\\text { Materials used: } & 4,750 \mathrm{~m} \\\text { Units produced: } & 1,000 \text { units } \\\text { Direct labour: } & 2,100 \text { hours costing } \$ 17,850\end{array}$ Required:
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:

Square Wave Voltage

A voltage signal which alternates between a high and a low level in a square-shaped waveform, typically representing binary data.

Positive Pulses

Short bursts of electrical energy that have a higher voltage level than the ground or reference point, often used in digital and electronic signaling.

Compound Motor

A type of DC motor that combines both series and shunt winding to offer high starting torque and good speed regulation.

Series and Shunt

Terms used to describe configurations in electrical circuits; "series" refers to components connected end-to-end, while "shunt" refers to components connected parallel to each other.