ATTEMPT ALL THE QUESTIONS

(4 ) As cost accountant of Rackets Ltd, you estimate the standard cost of making one unit is as follows:

Direct material 4 kilos at 7 per kilo

Direct wages 5 hours at 10 per hour

The actual cost of a batch of 1000 units was:

Direct material 28960 (4328 kilos)

Direct wages 50200 (5370 hours)

Calculate the following:

(vi) The total labour cost variance

(vii) The total cost variance