97) Given the following data:
Standard price per unit of input$15 per foot$15 per hour
Actual price per unit of input$17 per foot$14 per hour
Standard inputs allowed per unit
of output4 feet2 hours
Actual units of input1,750 feet850 hours
Actual units produced400 units
Required: Compute the price, usage and flexible-budget variances for direct material and labour. Indicate whether each variance is favourable or unfavourable.
98) The following data are for the month of August for Murdock Corporation, a company that makes saucers.
Expected for EachPrice per
Unit of Output Unit of Input
Direct material10 pounds$ 6 per pound
Direct labour3 hours$10 per hour
During the month of August, the company actually produced 1,000 saucers, which is 50 units less than expected. Direct material purchased and used amounted to 10,500 pounds at a cost of $6.25 per pound. Actual direct labour was 2,900 hours at an actual cost of $10.50 per hour.
a.What is the standard cost per saucer for direct material and direct labour?
b.Compute the price and usage variances for direct material and direct labour.