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4 Jelita Beauty Sdn Bhd produce face serum. The company produce their product in their small-scale production plant. The following information relates with standard requirement
4 Jelita Beauty Sdn Bhd produce face serum. The company produce their product in their small-scale production plant. The following information relates with standard requirement for each unit of the serum bottles. Direct material Direct labour Variable overhead RM 1.3 kg @ RM 4.20 per kg 5.46 2 hours @ RM 4.00 per hour 2 hours @ RM 3.00 per hour 8.00 6.00 The production of the product had a budgeted fixed overhead of RM657,600 per annum. Overhead was absorb based on direct labour hours with monthly budgeted production unit of 4,000 units. Actual data for the production in November 2021 was recorded as follows: (i) The direct materials recorded and charged to production are 5.550kg at RM 3.50 per kg. (ii) Direct labour involved in the production was paid RM3.25 per hour. A total of 6,450 hours was recorded for the job. (iii) Variable overhead incurred was RM 25,430 and fixed overhead is RM 49,500. Face Serum produced are 4,200 units. (iv) Required: Calculate the following variances for November 2021 and indicate whether each of it is favorable (F) or adverse (A). (a) Direct material price. (3 marks) (b) Direct material usage. (3 marks) (c) Direct labour rate. (3 marks) (d) Direct labour efficiency. (3 marks) (e) Variable overhead expenditure. (3 marks) (f) Variable overhead efficiency. (3 marks) (g) Fixed overhead expenditure. (3 marks) (h) Fixed overhead efficiency. (4 marks)
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