97) Given the following data:

DirectDirect

MaterialLabour

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.

Standard InputsStandard

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.

Required:

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.



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