Question

Jay Levitt Company budgeted the following cost standards for thecurrent year:

Direct materials (2 kg of plastic at $6 per kilogram)		$12.00
Direct labour (2 hours at $11 per hour)		22.00
Variable manufacturing overhead		10.50
Fixed manufacturing overhead		6.35
Total standard cost per unit		$50.85

Actual costs for producing 2,700 units were as follows:

Direct materials used		5,790	kg
Direct materials purchased (6,650 kilograms)		$27,930
Direct labour (6,900 hours)		$64,860
Variable manufacturing costs		$32,900
Fixed manufacturing costs		$17,500

a. Calculate the material price variance for materialspurchased.

b.Calculate the material efficiency variance.

c.Calculate the labour price variance.

d.Calculate the labour efficiency variance.