Question : 5.Perez Company adopted a standard cost system several years ago. : 1416269

 

5.Perez Company adopted a standard cost system several years ago. The standard costs for the prime costs of its single product follow:

Material:  10 kilograms @ $4.50 per kilogram$45.00

Labor:  6 hours @ $8.50 per hour$51.00

 

The following operating data were taken from the records for November:

 

(1)Units completed:  5,800 units

(2)Budgeted output:  6,000 units

(3)Materials purchased and used:  60,000 kilograms

(4)Total actual labor costs:  $306,600

(5)Actual hours of labor:  36,500 hours

(6)Materials quantity variance:  $2,250 unfavorable

(7)Net materials variance:  $450 unfavorable

 

Compute the following:

 

a.Labor rate variance

b.Labor efficiency variance

c.Actual kilograms of material used in the production process

d.Actual cost paid per kilogram of material