The following standard costs per unit, of one product, have been taken from the records of Bahrain Company:
Direct materials 5 kgs at $3 per kg
Direct labor 2.5 hours at $10 per hour
Actual data for Jast month.
Units produced: 12.000
Direct materials used: 35,000 kgs
Direct labor hours: 22,000
Direct labor rate per hour: $9
Direct materials purchased: 100,000 kgs
Direct material price: 54 per kg
Required:
(a) Compute the price and efficiency variances for direct materials and direct labor. Direct material price variance to be calculated at the time of purchase is marks
(b) Prepare the journal entries to record the price and efficiency variances for direct materials and direct labor
