Bryan Company employs a standard cost system in which direct materials inventory is carried at standard cost. Bryan has established the following standards for the prime costs of one unit of product:
| |
Standard
Quality |
Standard Price |
Standard
Cost
|
| Direct Materials |
6 kilograms |
$ 3.50/kilogram |
$21.00 |
| Direct Labour |
1.3 hours |
$11.00/hour |
$14.30 |
| |
|
|
$35.30 |
During March, Bryan purchased 165,000 kilograms of direct materials at a total cost of $585,750. The total factory wages for March were S400,000, 90 percent of which were for direct labour. Bryan manufactured 25,000 units of product during March, using 151,000 kilograms of direct materials and 32,000 direct labour hours.
Required:
a. What was the mice variance for the direct materials acquired by the company during March?
b. What was the direct materials quantity variance for March?
c. What was the direct labour rate variance for March?