Answer to question (a) | |||
Standard Quantity Produce | 5000 | Actual quantity Produced | 4800 |
Standard material rate | 1.80/mtr | actual marterial rate | 1.90/mtr |
Standar Qty used for actual productionn | 9600 | Actual quantity used | 9780 |
Mareial cost Variance (SQ*SP)-(AQ*AP) | -1302 | Unfavourable | |
Materal Rate Variance (SR-AR)*AQ | -978 | Unfavourable | |
Marerial quantity Variance (SQ-AQ)*SR | -324 | Unfavourable | |
Answer to question (b) | |||
Standard Hours for Actual Production | 3200 | Actual Hours | 3300 |
Standard Rate | 12 | Actual Rate | 12.1 |
Answer to question (c) | |||
Labour Cost Variance (SH*SR)-(AH*AR) | -1530 | Unfavourable | |
Labour Rate Variance (SR-AR)*AH | -330 | Unfavourable | |
Labour Efficiency Variance (SH-AH)*SR | -1200 | Unfavourable | |
Answer to question (c) | |||
i) Spending variance | |||
Standard Hours for Actual Production | 3200 | Actual Hours | 3300 |
Budgeted Variable OH for actual Production | 6400 | Actual Variable OH | 6800 |
Budgeted Fixed OH for actual Production | 12800 | Actual Fixed OH | 13800 |
Total Budgeted OH for actual hrs. | 19200 | Total Actual OH | 20600 |
Spending Variance = Actual - Budgeted | 1400 | Favourable | |
OH Efficiency Variance (AH-SH)*SR | 600 | Favourable | |
Rate Variance (AR-SR)*AH | 800 | Favourable |
Answer to Question (d)
There is unfavourable Material cost and Labor cost variance, where on the other hand favourable overheads. Management needs to cut down its material cost and labor cost to match with standard cost and to keep its margin.
ks 1& 2 pending * FNSACC613 05-6.pdf Als/FNSACC613%20Q5-6.pdf Direct Materials: Direct Labour: Factory Overhead: 2 metres...
Subatomic Shirts' standard cost included 0.70 metres of direct material per t-shirt at $3.80 per metre. Subatomic actually used 32,500 metres of direct material at a cost of $3.75 per metre to produce 50,000 t-shirts. a) Calculate the direct materials price variance: $ b) Is the direct materials price variance favourable or unfavourable? c) Calculate the direct materials quantity variance: $ d) Is the direct materials quantity variance favourable or unfavourable? e) Calculate the total direct materials variance: $ f)...
The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5.0 millilitres $ 0.30 per millilitre $ 1.50 Direct labour 0.4 hours $ 12.00 per hour $ 4.80 During the most recent month, the following activity was recorded: 28,000 millilitres of material was purchased at a cost of $0.25 per millilitre. All of the material was used to produce 3,000 bottles...
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The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.0 millilitres $ 0.26 per millilitres $ 1.82 Direct labour 0.4 hours $ 12.00 per hour $ 4.80 During the most recent month, the following activity was recorded: 26,000 millilitres of material was purchased at a cost of $0.21 per millilitre. The company produced only 2,000 bottles, using 22,000 millilitres of...
Mark: 19 (1 point for each question) 1) The unemployment rate is high in the city in which a company has a factory. The company finds that they are able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago. Which variance is directly impacted? A) Materials price variance B) Materials efficiency variance C) Labour price variance D) Labour efficiency variance 2) Thomas Corporation produces stopwatches. According to company standards, it...
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