Jersey Company Produced 1,000 Trash Cans During April Using 450

Essay

Jersey Company produced 1,000 trash cans during April using 450 direct labour hours and 3,100 kg of rubber. Its materials and labour standards are as follows: $\begin{array}{lr}\text { Direct materials ( } 3 \mathrm{~kg} \text { of rubber }(\$ 0.50 \text { per kilogram) } & \$ 1.50 \\\text { Direct labour }(0.5 \text { hours }(0) \$ 16.00 \text { per hour) } & 3.00\end{array}$ Its materials price variance was a favourable $620 and its labour rate variance was an unfavourable $900.
Required:
A. Calculate the actual materials price per unit.
B. Calculate the actual labour rate.
C. Determine the materials usage variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.