Black and Digger's Manufactures Hedgers

Essay

Black and Digger's manufactures hedgers. During the year, it manufactured 5,000 hedgers, using 4.2 hours of direct labour per hedger at a rate of $8 per hour. The materials and labour standards for manufacturing the hedgers are as follows:
Direct materials (10 units @ $2 per unit) $20
Direct labour (4 hours @ $7.50 per hour) 30
Black and Digger's actually used 53,000 units of direct materials at a price of $2.25 per unit.
Required:
A. Determine the materials price variance and whether it is favourable or unfavourable.
B. Determine the materials usage variance and whether it is favourable or unfavourable.
C. Determine the labour rate variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.