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Direct Material Variances Lecture Example 1 Majid Khan has the following details for its products for the month of May

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Direct Material Variances Lecture Example 1 Majid Khan has the following details for its products for the month of May. It was budgeted that 10,000 units should be produced using 4 kg of materials at a cost of $1.20 per kg. In fact, only 9,000 units were produced using 39,000 kg at a total cost of $52,650. There was no change in the stocks of materials. Calculate the total material cost variance and sub- analyse it into price and usage variance. Direct Labour Cost Variances Lecture Example 2 The following is an extract from the standard cost card for product 309: $ $ Standard cost of labour (4 hours @ $6.60 per hour) 26.40 The actual production for the period under review was 200 units and the number of hours worked were 760. The total wage bill for this product for the period was $5,252. Calculate the total labour cost variance, labour rate variance and labour efficiency variance.