Unformatted text preview: nth, the company used 500 pound in producing 200 units of output.
The direct materials purchase price variance, direct material price variance, direct material
flexible budget variance, and direct material efficiency variance, respectively, for last month
were: 2. The standard number of hours that should have been worked for the output attained is 8,000
direct labour hours and the actual number of direct labour hours worked was 8,400. If the
direct labour price variance was $4,200 unfavourable, and the standard rate of pay was $9
per direct labour hour, what was the actual rate of pay for direct labour? 3. If a purchasing agent is able to negotiate a price lower than that set by the current budget by
purchasing poor quality direct materials, then
A reduction in customer service costs will result
There will not be an unfavourable direct materials efficiency variance
There will not be an unfavourable direct labour efficiency variance
There will not be an unfavourable purchase price variance
None of the above a.
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This document was uploaded on 03/23/2014 for the course COMMERCE 2AB3 at McMaster University.
- Winter '14