Question
1. XY Inc. provides the following data for June 2019 when 13,000 Units are manufactured: Standard Material Cost (Per Unit) 6.20 kg @ $ 10.25/kg
1. XY Inc. provides the following data for June 2019 when 13,000 Units are manufactured:
Standard Material Cost (Per Unit)
6.20 kg @ $ 10.25/kg
Actual Material Cost (Per Unit)
6.85 kg @ $ 13.8/kg
Standard Labor cost (Per Unit)
5.5 hrs @ $ 14/hr
Actual Labor cost (Per Unit)
5.30 hrs @ $ 15.2 /hr
a) Calculate:
- Direct Material Price Variance
- Direct Material Quantity/Usage Variance Total Material Cost Variance
- Direct Labor Rate Variance
- Direct Labor Efficiency Variance
- Total Labor Cost Variance
(b) Calculate Variable Overhead Spending Variance if actual labor hours used are 360, standard
variable overhead rate is $11.40 per direct labor hour and actual variable overhead rate is
$10.30 per direct labor hour. Also specify whether the variance is favorable or unfavorable.
(c) Calculate the variable overhead efficiency variance using the following figures: (3 marks)
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