The direct materials and direct labour standards for one bottle of CleanAll spray cleaner are given below:
During the most recent month, the following activity was recorded:
a millilitres of material was purchased at a cost of $ per millilitre.
b All of the material was used to produce bottles of CleanAll.
c hours of direct labour time was recorded at a total labour cost of $
Assume that instead of producing bottles of CleanAll during the month, the company produced only bottles, using
millilitres of material. The rest of the material purchased remained in raw materials inventory.
Required:
Compute the direct materials price and quantity variances for the month. Indicate the effect of each variance by selecting F for
favourable, U for unfavourable, and "None" for no effect ie zero variance
