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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)

image text in transcribed
Number of Units Produced 720 Standard Direct Labor Hours Per Unit 1.2 Actual Direct Labor Hours Used 360 Standard Variable Overhead Rate $11.40

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