Question

QUESTION 4 Use the information provided below to calculate the following variances: • Raw material usage...

QUESTION 4 Use the information provided below to calculate the following variances: • Raw material usage variance • Direct labour rate variance • Direct labour efficiency variance • Variable overheads efficiency variance. Note: Indicate whether each variance is favourable or unfavourable. INFORMATION The standards and actual information for product Zin produced by ABC Ltd are as follows: Standards: Material J Labour Variable overheads Normal production 4 kg @ $5 per kg 3 hours @ $30 per hour $11 per labour hour 10 000 units per month Actual information for October 2017: Material J used Labour Variable overheads Production 37 800 kg @ a total cost of $187 110 26 100 hours @ $31 per hour $12 per labour hour 9 000 units

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Veriance Formula Calculation Result
1 Raw material usage variance standared rare*(SQ-AQ) 5$*(9,000*4kg -37,800kg) 9,000U
2 Direct labour rate variance Actual hours worked*(SR-AR) 26,100hours*(30-31) 26,100U
3 Direct labour efficiency variance Standared rateof labour hour*(SH-AH) 31$*(9,000units*3hours -26,100hours) 27,900F
4 Variable overheads efficiency variance Standared rate of VOH*(SH-AH) 11$*(9,000units*3hours -26,100hours) 9,900F

F=favourable ,u= unfavourable,

SQ=STANDARED QUANTITY OF RAW MATERIAL REQUIRED FOR ACTUAL OUTPUT

​AQ=ACTUAL QUANTITY OF RAW MATERIAL REQUIRED FOR ACTUAL OUTPUT

​SH=STANDARED LABOUR HOURS REQUIRED FOR ACTUAL OUTPUT

​AH=ACTUAL LABOUR HOURS REQUIRED FOR ACTUAL OUTPUT

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Material A: 3 kilograms at R20 per kilogram Material B: 5 kilograms at R15 per kilogram...
Material A: 3 kilograms at R20 per kilogram Material B: 5 kilograms at R15 per kilogram Direct labour: 8 hours at R10 per hour Fixed overheads: R120 000 Budgeted production: 9000 units Actual results for February 2019 were as follows: Material A: 32 500 kg at R22 per kilogram Material B: 54 000 kg at R14 per kilogram Direct labour: 88 000 hours at R12 per hour Fixed overheads: R132 000 Production: 10 000 units REQUIRED: Calculate the following: 1.1.1...
1.2 REQUIRED: Use the information provided below to calculate the following: 1.2.1 Idle time variance (3)...
1.2 REQUIRED: Use the information provided below to calculate the following: 1.2.1 Idle time variance (3) 1.2.2 Labour mix variance (7) 1.2.3 Labour yield variance (3) Indicate whether each variance is favourable or unfavourable. INFORMATION: Standard labour costs for Electro Manufacturers to manufacture 2 000 units: 400 hours at R70 per hour 200 hours at R35 per hour Actual labour costs incurred to produce 1 900 units: 290 hours at R R65 per hour 170 hours at R32 per hour...
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg...
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $5 per kilogram) $10.00 Direct labour (2 hours at $12 per hour) 24.00 Variable manufacturing overhead 11.85 Fixed manufacturing overhead 6.15 Total standard cost per unit $52.00 Actual costs for producing 2,690 units were as follows: Direct materials used 5,920 kg Direct materials purchased (6,730 kg) $32,304 Direct labour (6,950 hours) $67,415 Variable manufacturing costs $32,200 Fixed manufacturing costs $17,700 1....
Below is the information on the operation of Spice Sdn. Bhd. which manufactures a health product...
Below is the information on the operation of Spice Sdn. Bhd. which manufactures a health product under the brand name SS: Standard Cost Card                                        RM             Direct material           0.8kg at RM12 per kg                            9.60             Direct labour              3 hours at RM6 per hour                   18.00             Variable overhead     4 hours at RM2.90 per hour              11.60                                                                                                              39.20 For the month of July 2020, the company has estimated to manufacture and sell 4,875 units of SS at a standard...
Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product....
Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours, and its standard costs per unit are as follows: Direct materials: 5 kg at $11.00 per kg $ 55.00   Direct labour: 3 hours at $12 per hour 36.00   Variable overhead: 3 hours at $7 per hour 21.00   Total standard cost per unit $ 112.00   The company planned to produce and sell 21,000...
The Clark Company makes a single product and uses standard costing. Some data concerning this product...
The Clark Company makes a single product and uses standard costing. Some data concerning this product for the month of May follow: Labour rate variance $7,000 favourable Labour efficiency variance $12,000 favourable Variable overhead efficiency variance $4,000 favourable Number of units produced 10,000 Standard labour rate per direct labour hour $12 Standard variable overhead rate per direct labour hour $4 Actual labour hours used 14,000 Actual variable manufacturing overhead costs $58,290 1) What was the variable overhead spending variance for...
Ralston Inc. has provided the following information. Use it to answer #1-5. Give all variances as...
Ralston Inc. has provided the following information. Use it to answer #1-5. Give all variances as a positive number. Round ONLY your final answer to dollars. HINT: first correctly identify your variables as per the study guide                                                                                                                                                                   Per Unit Standards:                                                                                                                                      Direct Materials 10 lb @ $2.60/lb 26 Direct Labor 2 hours @ $22.50/hr 45 Variable Overhead 2 hours @ $18/hr 36 Fixed Overhead 25                                                                         Total 132 Budgeted Production = 7,000 Units Actual Results Material Purchased 74,959 lbs $192,200 Material...
Tractor Corporation produces toy tractors. The company uses the following direct cost categories: Category Standard Inputs...
Tractor Corporation produces toy tractors. The company uses the following direct cost categories: Category Standard Inputs for 1 output Std. Cost per input Direct Materials 4.00 $12.50 Direct Labour 1.40 9.50 Direct Marketing 0.54 5.50 Actual performance and budgeted performance for the company is shown below: Actual output: (in units) 5,000 Direct Materials: Materials costs $299,000 Input purchased and used 23,000 Actual price per input $13.00 Direct Manufacturing Labour: Labour costs $ 95,000 Labour-hours of input 9,500 Actual price per...
The following standards have been established for a raw material used to make product I92:         ...
The following standards have been established for a raw material used to make product I92:          Standard quantity of the material per unit of output................................................ 6 pounds Standard price of the material.................. $2.25 per pound Standard hours of labor per unit of output 3 hours Standard rate of the labor per hour $8 per hour The following data pertain to a recent month’s operations: Actual material purchased...................... 13,600 pounds Actual cost of material purchased.......... $31,620 Actual material used in production...........
Question 1 A company manufactures a single product for which the standard variable cost is:                            
Question 1 A company manufactures a single product for which the standard variable cost is:                                                                          K per unit Direct material: 81 kg x K7 per kg                            567 Direct labour:    97 hours x K8 per hour                   776 Variable overhead: 97 hours x K3 per hour              291                                                                                1,634 Budget Sales and production volume                   81,600 units Standard selling price                               K59 per unit Standard variable cost                             K24 per unit During January, 530 units were produced and the costs incurred were as follows:...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT