The Following Data Are for the Month of August for Murdock

Essay

The following data are for the month of August for Murdock Corporation, a company that makes saucers. During the month of August, the company actually produced 1,000 saucers, which is 50 units less than expected. Direct material purchased and used amounted to 10,500 pounds at a cost of $6.25 per pound. Actual direct labour was 2,900 hours at an actual cost of $10.50 per hour.
Required:
a. What is the standard cost per saucer for direct material and direct labour?
b. Compute the price and usage variances for direct material and direct labour.