Baker Company Adopted a Standard Cost System Several Years Ago

Essay

Baker Company adopted a standard cost system several years ago.The standard costs for the prime costs of its single product follow:
The following operating data were taken from the records for December:
$\begin{array}{ll}\text { Material: } 10 \mathrm{~kg} @ \$ 4.50 \text { per kilogram } & \$ 45.00 \\\text { Labour: } 6 \text { hours } @ \$ 8.50 \text { per hour } & \$ 51.00\end{array}$


Compute the following:
A. Labour rate variance
B. Labour efficiency variance
C. Actual kilograms of material used in the production process
D. Actual cost paid per kilogram of material