Gemma Products produces and sells a variety of domestic goods including sheets.In the current year,the company budgeted for the production and sale of 10 000 sets;however,12 000 sets were actually produced and sold.Each set has a standard requiring 10 metres of material at a cost of $1.10 per metre and 20 minutes of direct labour (for sewing,assembly,and inspection)at a cost of $.20 per minute.Actual costs for the production of 12 000 sets were $138 240 for materials (128 000 metres purchased and used @ $1.08 per metre)and $55 200 for labour (230 000 minutes @ $.24 per minute).
Required: Compute each of the following variances.Indicate whether the variance is favourable (F)or unfavourable (U).
A. Direct materials price variance
B. Direct materials usage variance
Direct labour rate variance
D. Direct labour efficiency variance

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The Answer of Gemma Products produces and sells a variety of domestic goods including sheets.In the current year,the company budgeted for the production and sale of 10 000 sets;however,12 000 sets were actually produced and sold.Each set has a standard requiring 10 metres of material at a cost of $1.10 per metre and 20 minutes of direct labour (for sewing,assembly,and inspection)at a cost of $.20 per minute.Actual costs for the production of 12 000 sets were $138 240 for materials (128 000 metres purchased and used @ $1.08 per metre)and $55 200 for labour (230 000 minutes @ $.24 per minute).
Required: Compute each of the following variances.Indicate whether the variance is favourable (F)or unfavourable (U).
A. Direct materials price variance
B. Direct materials usage variance
Direct labour rate variance
D. Direct labour efficiency variance

Gemma Products Produces and Sells a Variety of Domestic Goods