Question

3.1       The standard cost of material for Product X for the first quarter of 2019 was: 4...

3.1       The standard cost of material for Product X for the first quarter of 2019 was:

  • 4 kg material at R20 per kg
  • 22 000 kg of material was purchased at R22 per kg
  • The actual production of Product X for the third quarter of 2019 was 5 000 which used 22 000 kg

Calculate the following variances:

3.1.1 Raw material price variance                                                                                                      (4)

3.1.2 Raw material usage variance                                                                                                    (4)

3.2       Explain the most likely reasons for the material price and usage variances

calculated in 3.1                                                                                                                      (3)

3.3       Discuss three (3) advantages of budgeting for businesses.  

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
QUESTION 5 (20 Marks) Information: A standard quantity of 2kg of material X at a standard...
QUESTION 5 Information: A standard quantity of 2kg of material X at a standard price of R4 per kg is allowed for the production of one unit of product Messi. The cost figures for the first quarter of 2020 showed that 4 400 kg of material X was purchased at R4.10 per kg. 2000 units of product Messi were produced using 4 200 kg of material X. Required: In respect of material, calculate and briefly comment on the following variances:...
The standard quantity and standard price of material to produce ‘Product X’ are as follows: Standard...
The standard quantity and standard price of material to produce ‘Product X’ are as follows: Standard Quantity: 800 kgs Actual Quantity: 900 kgs Standard Price: AED 10 / kg Actual Price: AED 12 / kg                                                                    Calculate: a. Material Cost Variance                b. Material Price Variance         c. Material Usage Variance Note : the Answer should be in Word Format and in Details
FBC(Pty) manufactures one product, Product X. You were given the following information for period 4. Product...
FBC(Pty) manufactures one product, Product X. You were given the following information for period 4. Product X has a standard material cost as follows. 10kg of material Y at P10 per kg =P100 per unit of X. During period 4, 1000 units of X were manufactured using 11700 kg of material Y which cost P98631. The standard labour cost of product X is as follows, 2 hours of grade Z labour at P10 per hour=P20 per unit of product X....
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...
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:...
QUESTION 5 The Standard material cost of produce one unit of a Cement Company is: 5...
QUESTION 5 The Standard material cost of produce one unit of a Cement Company is: 5 kg of Material A            @ SR 8 per kg 8 kg of Material B            @ SR 5 per kg During a period, 30 units of mixture X was produced from the usages of: 160 kg of Material A @ SR 7 per kg 230 kg of Material A @ SR 4 per kg Calculate :  Material Price Variance (MPV) A. 70 (Favorable) B. 160 (Favorable) C. 230...
Question 4 – Standard Costing (10 marks) The standard cost of making a single product is:...
Question 4 – Standard Costing The standard cost of making a single product is: 5kg @$2.75 per kg 13.75 0.4 hours @$6.40 per hour 2.56. Factory overhead 0.4 hours @3.50 per hour 1.400 $17.71 The factory overhead rate is based on a budgeted production of 20,000 units for the year, and budgeted fixed factory overhead of $12,000 for the month. Actual transactions and results for the year were: Direct Materials purchased 200,000kgs @ 2.78 per kg Direct Materials used 101,800...
The following is information related to X Company, a company that uses a standard cost system:...
The following is information related to X Company, a company that uses a standard cost system: Standard cost card for 1 unit of Product A: Direct materials – Raw Material A (1 kilogram @ $ 20/kg.) $ 20 Direct materials – Raw Material B (1 kilogram @$ 10/kg.) $ 10 Direct labour (1 hour @ $15/hr.) $ 15 V ariable overhead (1 hour @ $ 5/hr.) $ 5 Fixed overhead (1 hour @ $ 10/hr.) $ 10 Total budgeted fixed...
Colavita Co. uses a standard cost system for its single product. Variable overhead is applied on...
Colavita Co. uses a standard cost system for its single product. Variable overhead is applied on the basis of direct labor hours. The following information is given: Standard costs per unit: Raw materials (1.5 grams x $16 per gram $24.00 Direct Labor (0.75 hours x $8 per hour) $6.00 Variable Overhead (0.75 hours x $3 per hour) $2.25 Actual experience for current year: Units produced 22,400 units Purchases of raw materials (21,000 grams x $17 per gram $357,000 Raw materials...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come from material costs that are higher or lower than expected, material usage that is not what was expected, higher or lower labor costs than expected, or more or less time spent to produce an item than expected. Overhead cost and volume variances are another cause for costs to be higher or lower than what was expected. The total manufacturing variance can be broken down...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT