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(4 points) (10-20 mins) Company X developed standard costs for direct materia...
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(4 points) (10-20 mins) Company X developed standard costs for direct material and direct labor. In 2020, the company estimated the following standard costs for one of their major products, the 30-liter heavy-duty plastic container.
Budgeted quantity
|
Budgeted price
|
Direct materials
|
0,60 kgs
|
€20 per kg
|
Direct labor
|
0,30 hours
|
€14 per hour
|
During July, Company X produced and sold 4 000
containers using 2 700 kgs of direct materials at an average cost per kg of €19 and 1430 direct manufacturing labor hours at an average wage of €14,30
per hour.
Required (present all the necessary auxiliary calculations):
a) Calculate the direct manufacturing labor flexible-budget variance during July.
b) Calculate the direct manufacturing labor price variance during July.
c) Calculate the direct manufacturing labor efficiency variance during July.