ACW271 MANAGEMENT ACCOUNTING II

TOPIC 3 TUTORIAL

Question 1

The material and labour standard card for producing one unit of ABC is:

Materials

10kg of material A @ RM1 per kg RM10 5kg of material B @ RM3 per kg RM15 RM25 Labour 20 hours of grade 1 labour @ RM0.70 per hour RM14
30 hours of grade 2 labour @ RM0.50 per hour RM15	RM29
Total standard cost of material and labour for 1 unit Actual production was 100 units Actual costs were: Materials 950kg of material A costing RM1, 000	RM54
510kg of material B costing RM1, 400 Labour 2,100 hours of grade 1 labour costing RM1, 450	RM2, 400
2,950 hours of grade 2 labour costing RM1, 490	RM2, 940
Actual material and labour cost of production	RM5, 340

Calculate the material price and usage variance for material A and B, the labour rate and efficiency variances for grade 1 and grade 2 labour.