During March, Raining Unlimited Produced 5,500 Umbrellas from Nylon That

Essay

During March, Raining Unlimited produced 5,500 umbrellas from nylon that costs $0.45 per metre, which is $0.05 per metre cheaper than the standard cost. It also used 3,000 direct labour hours at a rate of $6.50 per hour. Its direct materials standard is 1 m per umbrella. Its direct labour standard is 0.5 hour per umbrella.Its materials usage variance was a favourable $500, and its labour rate variance was a favourable $900.
Required:
A. Calculate the actual quantity of materials.
B. Calculate the standard labour rate.
C. Determine the materials price variance and whether it is favourable or unfavourable.
D. Determine the labour efficiency variance and whether it is favourable or unfavourable.
E. Record the entries for the materials purchase, the issuance and usage of materials, and the labour variances.
F. Provide the closing entries, assuming all variances are immaterial.