Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A) Pan and Cook Ltd operates a large bakery at the AnC shopping center. The company employs a standard costing system. The expected production for

image text in transcribed

A) Pan and Cook Ltd operates a large bakery at the AnC shopping center. The company employs a standard costing system. The expected production for January 2021 for its flagship large size sponge cake was 150, but in February the figures show a production and sales of 120 large size sponge cakes for January. The actual costs for January were 380 labour hours (at a cost of GHS 8,360); Fixed overhead of GHS 5,000; 1,150 kg of materials (at a cost of GHS 2,875). Only 90% of direct materials were used in production, while 5% of direct labour constituted idle time. As a manager you know the following standards: Materials: 10 kg at GHS 3/kg Labour: 4 hours at GHS 20/hour Fixed overhead: GHS 40/ unit Required: Calculate both the price and quantity variances for materials, labour and overhead. i). [18 marks] ii). Indicate who you would interview to learn more about the labour variance and state any two (2) reasons why such person should be interviewed [4 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations And Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

7th Edition

0324560559, 978-0324560558

More Books

Students also viewed these Accounting questions

Question

Why was no private party willing and able to acquire AIG? LO6

Answered: 1 week ago