Problem
Accounting Assume that 3,000 units were budgeted for being produced and sold and 2,800 were actually produced and sold. Each unit is budgeted to consume 350 grams of plastic, which costs $4.00 per 100 grams. Actual results show that each unit used 341 grams of plastic at a cost of $4.50 per 100 grams. The cost of plastic is the only variable cost.
Task: Calculate the rate and efficiency variances for the variable costs.