MA54 Problem: Variances - Andres Industries

MA54 Problem: Variances - Andres Industries

Andres Industries employs a standard cost system. Andres has established the following standards for the prime costs of its Hunters' Bow product line:

Standard 

Standard 

Standard 

Quantity

 Price

Cost 

Direct materials 8 kg

$1.80/kg

$14.40Direct labour 0.25 DLH

$8.00/DLH

2.00

$16.40 During November, Andres purchased 160,000 kg of direct materials at a total cost of $304,000. The totalfactory wages for November were $42,000, 90% of which were for direct labour. Andres manufactured19,000 Hunters' Bows during November using 142,500 kg of direct materials and 5,000 direct labour hours.

 Required -

a. What was the direct materials purchase price variance for November? b. What was the direct materials usage variance for November?c. What was the direct labour rate variance for November?d. What was the direct labour efficiency variance for November?