Reference no: EM132547527
During March, Gul Ahmed Fabrics Corporation manufactured 1,000 units of a special multilayer fabric with the trade name Ideas. The following information from the Ideas production department also pertains to March.
The standard prime costs for one unit of Ideas are as follows:
Direct-labor rate variance: RS 630 Unfavorable
Direct material purchased: 36,000 yards at RS 1.38 per yard RS 49,680
Direct material used: 19,000 yards at RS 1.38 per yard RS 26,220
Direct labor: 4,200 hours at RS 9.15 per hour RS 38,430
Direct material: 20 yards at RS 1.35 per yard RS 27
Direct labor: 4 hours at RS 9.00 per hour RS 36
Total standard prime cost per unit of output RS 63
Question 1: Calculate:
a) Direct Materials Usage and Price Variances
b) Direct Labor Efficiency
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