Wilson's Summer Cottons manufactures shirts and other cotton clothing. A certain designed t-shirt requires the following:
Direct materials standard 0.9 square metres at $1.50 per metre
Direct manufacturing labour standard 0.25 hours at $14.00 per hour
During the third quarter, the company made 7,500 t-shirts and used 8,250 square metres of fabric costing $11,550. Direct labour totaled 1,650 hours for $23,265.
Required:
a. Compute the direct materials price and efficiency variances for the quarter.
b. Compute the direct manufacturing labour rate and efficiency variances for the quarter.

Question

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The Answer of Wilson's Summer Cottons manufactures shirts and other cotton clothing. A certain designed t-shirt requires the following:
Direct materials standard 0.9 square metres at $1.50 per metre
Direct manufacturing labour standard 0.25 hours at $14.00 per hour
During the third quarter, the company made 7,500 t-shirts and used 8,250 square metres of fabric costing $11,550. Direct labour totaled 1,650 hours for $23,265.
Required:
a. Compute the direct materials price and efficiency variances for the quarter.
b. Compute the direct manufacturing labour rate and efficiency variances for the quarter.

Wilson's Summer Cottons Manufactures Shirts and Other Cotton Clothing