Sterling Manufacturing Has Developed the Following Standards for One of Its

Essay

Sterling Manufacturing has developed the following standards for one of its products.
The company records materials price variances at the time of purchase.
The following activity occurred during the month of December:
$\begin{array}{lr}\text { Materials: } 5 \mathrm{~m} \times \$ 6 \text { per metre } & \$ 30 \\\text { Direct labour: } 2 \text { hours } \times \$ 8 \text { per hour } & 16\end{array}$ Required:
$$\begin{array} { l l } \text { Materials purchased: } & 5,200 \mathrm {~m} \text { costing } \$ 29,900 \\\text { Materials used: } & 4,750 \mathrm {~m} \\\text { Units produced: } & 1,000 \text { units } \\\text { Direct labour: } & 2,100 \text { hours costing } \$ 17,850\end{array}$$ A. Calculate the direct materials price variance.
B. Calculate the direct materials usage variance.
C. Calculate the direct labour rate variance.
D. Calculate the direct labour efficiency variance.