Here is information about standard costs for Rusth Manufacturing:
Standard Cost per Unit
Direct materials (4 metres @ $6 per metre)$24
Direct labour (? hours @ $? per hour)?
During the current period 3,500 units were produced. Rusth purchased 12,000 metre of material at a cost of $81,000. The direct materials inventory decreased by 1,500 metres during the period. 5,000 hours were used at a cost of $41,250. The direct labour efficiency variance was $2,000 favourable and the combined price and efficiency variances for direct labour were $750 favourable.
a)Determine direct materials price and efficiency variances.
b)Determine the standard cost of direct materials for units produced.
c)Determine the direct labour price variance.
d)Determine the standard price per direct labour hour and the standard number of direct labour hours per unit.
Correct Answer:
Verified
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