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QUESTION
Thrill Games developed a new play station called T-RILL. Thrill Games has a standard cost system to help control
Thrill Games developed a new play station called T-RILL. Thrill Games has a standard cost system to help control
its costs. The following standards have been established for T-RILL.
- Direct materials 15 grams per T-RILL.
- Standard direct material cost per T-RILL is $10.
- Direct labour 1.4 hours per T-RILL.
- Standard cost of direct labour is $14.40 per T-RILL.
During October the company produced 6,500 T-RILL units. Production data for October are:
- Direct materials: 95,000 grams were purchased at a cost of $60,000; 5,000 grams of this was
- still in inventory at the end of the month.
- Direct labour: 9,000 direct labour hours were worked at a cost of $95,000.
Required:
Compute the following variances for October:
