During the past month, the company purchased 1,500 kilograms of direct materials at a cost of…

 
   

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During the past month, the company purchased 1,500 kilograms of direct materials at a cost of $4,200. All of this material was used in the production of 840 units of product using 425 hours of direct labour. Direct labour cost totalled $4,675 for the month. The following variances have been computed:

Labour rate variance $ 425 U Total labour variance $ 375 F Materials quantity variance $ 750 U