(SOLVED) Refer to the data in Exercise 10 23 Calculate the pure


Question Description:

$20

Refer to the data in Exercise 10.23. Calculate the pure rate variance and joint rate efficiency variance for direct labour. Draw a graph of the direct labour variances similar to the graph in Exhibit 10.11
Refer to data in exercise 10.23
During June, Andrew Ltd’s material purchases amounted to 6500 kilograms at a price of $8 per kilogram. Actual costs incurred in the production of 2000 units were as follows:
Direct labour ………………………. $177 375……………….. ($27.50 per hour)
Direct material …………………….. $34 400 ………………… ($8 per kilogram)
The standards for one unit of Henderson’s product are as follows:
Direct labour ___________________________ Direct material
Quantity: 3 hours per unit ……………………. Quantity: 2 kilograms per unit
Rate: $27 per hour ………………………………… Price: 87.50 per kilogram

Answer

$20