Question

Question 3 (10 marks; 18 minutes) Picture Pretty manufactures picture frames. Sales for August are expected to be 10,000 units of various sizes. Historically, the average frame requires four feet of framing, one square foot of glass, and two square feet of backing. Beginning inventory includes 1,500 feet of framing, 500 square feet of glass, and 500 square feet of backing Current prices are RO.30 per foot of framing. R6.00 per square foot of glass, and R2.25 per square foot of backing. Ending inventory should be 150% of beginning inventory. Purchases are paid for in the month acquired Required: 3.1 Determine the quantity of framing, glass, and backing that is to be purchased during August 3.2 Determine the total costs of direct materials for August purchases Question 4 (20 marks; 36 minutes) Littrell Company produces chairs and has determined the following direct cost categories and budgeted amounts: Category Direct Materials Direct Labor Direct Marketing Standard Inputs for 1 output 1.00 0.30 0.50 Standard Cost per input R7.50 R9.00 R3.00 Actual performance for the company is shown below. 4 000 R30 225 3 900 R7.75 Actual output: (in units) Direct Materials: Materials costs Input purchased and used Actual price per input Direct Manufacturing Labor Labor costs Labor-hours of input Actual price per hour Direct Marketing Labor: Labor costs Labor-hours of input Actual price per hour R11 470 1 240 R9.25 R5 880 2 100 R2.80 Required: 4.1 What is the combined total of the flexible-budget variances? (8) 42 What is the price variance of the direct materials? 4.3 What is the price variance of the direct manufacturing labor and the direct marketing labor, respectively? (4) 4.4 What is the efficiency variance for direct materials?

Answer 1

Q3.
a.

Material Purchase
	Framing	Glass	Backing
Material Required per unit	4 ft	1 sq ft	2 sq ft
Material Required for 10000 units	40000	10000	20000
Add : Ending Inventory	2250	750	750
Total Needs	42250	10750	20750
Less : Beginning Inventory	1500	500	500
Material to be purchased	40750	10250	20250
	ft	sq ft	sq ft

b.

	Framing	Glass	Backing	Total
Material to be purchased	40750	10250	20250
Cost per feet	0.3	6	2.25
Material Cost	12225	61500	45562.5	119287.5