Jersey Company produced 1,000 trash cans during April using 450 direct labour hours and 3,100 kg of rubber.Its materials and labour standards are as follows:
Its materials price variance was a favourable $620 and its labour rate variance was an unfavourable $900.
$\begin{array}{lr}
\text { Direct materials ( } 3 \mathrm{~kg} \text { of rubber } @ \$ 0.50 \text { per kilogram) } & \$ 1.50 \
\text { Direct labour }(0.5 \text { hours } @ \$ 16.00 \text { per hour) } & 3.00
\end{array}$ A. Calculate the actual price per unit.
B. Calculate the actual labour rate.
C. Determine the materials usage variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

Question

Jersey Company produced 1,000 trash cans during April using 450 direct labour hours and 3,100 kg of rubber.Its materials and labour standards are as follows:
Its materials price variance was a favourable $620 and its labour rate variance was an unfavourable $900.
 $\begin{array}{lr}
\text { Direct materials ( } 3 \mathrm{~kg} \text { of rubber } @ \$ 0.50 \text { per kilogram) } & \$ 1.50 \
\text { Direct labour }(0.5 \text { hours } @ \$ 16.00 \text { per hour) } & 3.00
\end{array}$ A. Calculate the actual price per unit.
B. Calculate the actual labour rate.
C. Determine the materials usage 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 Jersey Company produced 1,000 trash cans during April using 450 direct labour hours and 3,100 kg of rubber.Its materials and labour standards are as follows:
Its materials price variance was a favourable $620 and its labour rate variance was an unfavourable $900.
 $\begin{array}{lr}
\text { Direct materials ( } 3 \mathrm{~kg} \text { of rubber } @ \$ 0.50 \text { per kilogram) } & \$ 1.50 \
\text { Direct labour }(0.5 \text { hours } @ \$ 16.00 \text { per hour) } & 3.00
\end{array}$ A. Calculate the actual price per unit.
B. Calculate the actual labour rate.
C. Determine the materials usage variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.

Jersey Company Produced 1,000 Trash Cans During April Using 450