Hair of the K9 manufactures dog food.During the month,it manufactured 3,000 bags of kibble,using 0.25 hours of direct labour per bag at a rate of $9.00 per hour.The materials and labour standards for manufacturing the bags of kibble are as follows:
The company actually used 3,300 kg of beef at a price of $1.10 per kilogram.It also purchased 3,000 bags at a price of $0.15 per bag.
$\begin{array}{lr}
\text { Direct materials ( } 1 \text { kg of beef } @ \$ 1.00 \text { per kilogram) } & \$ 1.00 \
\text { Direct materials (1 bag } @ \$ 0.25 \text { per bag) } & 0.25 \
\text { Direct labour }(0.30 \text { hour }@\$ 9.00 \text { per hour }) & 2.70
\end{array}$ A. Determine the total materials price variance and whether it is favourable or unfavourable.
B. Determine the materials usage variance for beef and whether it is favourable or unfavourable.
C. Determine the labour rate variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

Question

Hair of the K9 manufactures dog food.During the month,it manufactured 3,000 bags of kibble,using 0.25 hours of direct labour per bag at a rate of $9.00 per hour.The materials and labour standards for manufacturing the bags of kibble are as follows:
The company actually used 3,300 kg of beef at a price of $1.10 per kilogram.It also purchased 3,000 bags at a price of $0.15 per bag.
 $\begin{array}{lr}
\text { Direct materials ( } 1 \text { kg of beef } @ \$ 1.00 \text { per kilogram) } & \$ 1.00 \
\text { Direct materials (1 bag } @ \$ 0.25 \text { per bag) } & 0.25 \
\text { Direct labour }(0.30 \text { hour }@\$ 9.00 \text { per hour }) & 2.70
\end{array}$ A. Determine the total materials price variance and whether it is favourable or unfavourable.
B. Determine the materials usage variance for beef and whether it is favourable or unfavourable.
C. Determine the labour rate variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

Quizplus · Accepted Answer

The Answer of Hair of the K9 manufactures dog food.During the month,it manufactured 3,000 bags of kibble,using 0.25 hours of direct labour per bag at a rate of $9.00 per hour.The materials and labour standards for manufacturing the bags of kibble are as follows:
The company actually used 3,300 kg of beef at a price of $1.10 per kilogram.It also purchased 3,000 bags at a price of $0.15 per bag.
 $\begin{array}{lr}
\text { Direct materials ( } 1 \text { kg of beef } @ \$ 1.00 \text { per kilogram) } & \$ 1.00 \
\text { Direct materials (1 bag } @ \$ 0.25 \text { per bag) } & 0.25 \
\text { Direct labour }(0.30 \text { hour }@\$ 9.00 \text { per hour }) & 2.70
\end{array}$ A. Determine the total materials price variance and whether it is favourable or unfavourable.
B. Determine the materials usage variance for beef and whether it is favourable or unfavourable.
C. Determine the labour rate variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

Hair of the K9 Manufactures Dog Food A Determine the Total Materials Price Variance and Whether It