The following information relates to Malcolm Limited: Budgeted production: 100 units. Unit specification (direct materials): 50 kilograms
Question:
The following information relates to Malcolm Limited:
Budgeted production: 100 units.
Unit specification (direct materials): 50 kilograms × £5 per kilogram = £250.
Actual production: 120 units.
Direct materials used: 5400 kilograms at a total cost of £32400.
Required:
Calculate the following variances:
1 direct material total;
2 direct material price; and 3 direct material usage.
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