BAC 300: MANAGEMENT ACCOUNTING

057 accounting mventon 2 . Tatoo Ltd supplies you with the following details for their two products. Product Budgeted Production Actual Production . Axe 10,000 units 12,000 units Bent 20,000 units 19,000 units Wages rate per hour is sh.2.50 for Axe and sh.3 for Bent respectively. In a month 7,000 hours were paid at sh.3 per hour. Of these hours, 350 hours were unproductive for unbudgeted holidays. There was a loss of production of 250 units of Axe due to power failure. A standard hour represent 5 units for Axe and 4 units "for Bent. Calculate labour variance. (25 marks ) Actual hours ( At ) = 70oohs formular = I RATE vowance DeAway Rake (AR ) = 250 3 CAM'S HE SOLUTIONS Your Guide to ( AH XAR ) ( AHXOR] Standard naike (SR ) = amps Academic Excellence, Modules & Past Papers II QuantAil Variance Standard hours ( SH ) $ 5 4. Cell 0721 710 888 AHX SR ) - (SH. + 8 ( AH X AR ) ( AN X = AH (AR-SR. Page 1 of 2 . INVOLVEMENT IN ANY EXAMINATION IRREGULARITY SHALL LEAD TO DISCONTINUATION 6