The following data for the lew grow Garden Supplies Company pertains to the production of 2,500 garden spades during March. The spade consists of a wooden handle and a metal forged tool that comes in contact with the ground.
Direct Materials (all materials purchased were used):
Standard cost: $1.00 per handle and $3.50 per metal tool.
Total actual cost: $11,350.
Materials flexible-budget efficiency variance was $650 unfavourable.
Direct Manufacturing Labour:
Standard cost is 5 garden spades per hour at $20.00 per hour.
Actual cost per hour was $21.00.
Labour efficiency variance was $400 favourable.
Required:
a. What is the standard direct material amount per garden spade?
b. What is the standard cost allowed for all units produced?
c. What is the total direct materials flexible-budget variance?
d. What is the direct material flexible-budget rate variance?
e. What is the total actual cost of direct manufacturing labour?
f. What is the labour rate variance for direct manufacturing labour?
Correct Answer:
Verified
Standard cost per garden spade = $1.0...
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