Sterling Manufacturing Has Developed the Following Standards for One of Its

question 156

Essay

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

---

Definitions:

Heterosexuality

A sexual orientation characterized by a romantic or sexual attraction towards individuals of the opposite sex.

Sexual Orientation

An inherent or immutable enduring emotional, romantic, or sexual attraction to other people.

Homosexuality

The orientation of being sexually attracted to people of one's own gender.

Gays

Individuals who are romantically or sexually attracted to people of the same sex.