Nike Corporation is into manufacturing shoes. In the financial Year 2019-20, Nike Corporation has the actual...
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Nike Corporation is into manufacturing shoes. In the financial Year 2019-20, Nike Corporation has the actual production was 20,000 units. The standard data for each unit of the product is given in the table below. unfavourable Particulars Leather (Material) Standard 200 gms each Actual Remarks Rs. 40/- gms @ 20/- Material each variance Usage is Labour Variable overheads 40 hours @ Rs. 55/- 42 hours @ each 40 hours each each is favourable Rs. 30/42 hours @ overhead each Labour Rate variance Variable expenditure variance is unfavourable 1. Fill in the data missing in the blanks for the actuals based on remarks given beside. (4 m) 2. Calculate the Material Usage Variance, labour Rate Variance and variable overhead Expenditure variance. (6 m) 3. Based on the variances calculated above, identify which all departments/managers would be reprimanded and which all departments/managers would be commended for their performance. Explain it in detail. (5 m) Note: The formulas for the variances have been given at the end. The same needs to be mentioned in the answer and all the detailed workings (step wise) needs to be shown while arriving at the variances. Nike Corporation is into manufacturing shoes. In the financial Year 2019-20, Nike Corporation has the actual production was 20,000 units. The standard data for each unit of the product is given in the table below. unfavourable Particulars Leather (Material) Standard 200 gms each Actual Remarks Rs. 40/- gms @ 20/- Material each variance Usage is Labour Variable overheads 40 hours @ Rs. 55/- 42 hours @ each 40 hours each each is favourable Rs. 30/42 hours @ overhead each Labour Rate variance Variable expenditure variance is unfavourable 1. Fill in the data missing in the blanks for the actuals based on remarks given beside. (4 m) 2. Calculate the Material Usage Variance, labour Rate Variance and variable overhead Expenditure variance. (6 m) 3. Based on the variances calculated above, identify which all departments/managers would be reprimanded and which all departments/managers would be commended for their performance. Explain it in detail. (5 m) Note: The formulas for the variances have been given at the end. The same needs to be mentioned in the answer and all the detailed workings (step wise) needs to be shown while arriving at the variances.
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To solve this problem lets fill in the missing data and calculate the variances 1 Missing data Actua... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Posted Date:
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