The Anaconda Company uses a flexible budget and standard costs to aid the planning and control of its manufacturing operations. At a 60,000 direct manufacturing labour hour level, budgeted variable overhead is $120,000 and budgeted direct labour is $480,000.
The following actual results are for September:
Variable manufacturing overhead flexible-budget variance $ 10,500 U
Variable manufacturing overhead efficiency variance $ 20,000 U
Direct manufacturing labour costs incurred $574,000
Materials price variance (based on purchases) $ 16,000 F
Materials efficiency variance $ 9,000 U
Fixed manufacturing overhead incurred $ 50,000
Fixed manufacturing overhead spending variance $ 2,000 U
The standard cost per kilogram of direct materials is $1.50. The standard allowance is l kg of direct materials for each unit of product. Ninety thousand (90,000) units of product were made during September. There was no beginning or ending work in process. In August, the materials efficiency variance was $1,000, favourable, and the price variance was $0.20 per kilogram, unfavourable. In September, the price variance was $0.10 per kilogram.
In August, labour troubles severely slowed production and caused an unfavourable direct manufacturing labour efficiency variance of $60,000. There was no manufacturing labour price variance. These troubles persisted in September, and some workers resigned. Their replacements had to he hired at higher rates, which had to be extended to all workers. The actual wage rate in September exceeded the standard average wage rate by $0.20 per hour.
Required:
Calculate the following:
1. Total number of kilograms of direct materials purchased during September.
2. Total number of kilograms of excess materials used.
3. Variable manufacturing overhead spending variance.
4. Total number of actual hours of direct manufacturing labour hours used.
5. Total number of standard direct manufacturing labour hours allowed for the units produced.