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Can someone please help solve this question? b) BNB Ltd uses a standard costing system. The standard cost card for one of its products shows
Can someone please help solve this question?
b) BNB Ltd uses a standard costing system. The standard cost card for one of its products shows that the product should use 6 kgs of material Q per finished unit, and that the standard price per kg is $6.00. BNB values its inventory of material at standard prices. During November 2020, when the budgeted production level was 4,000 units, 4,200 units were made. The actual quantity of material P used was 24,000 kgs and material Q inventories were reduced by 400 kg. The cost of material Q which was purchased was f139,000. Calculate the material price and usage variances for November 2020. 35 Marks c) Brilliant Ltd has prepared the following standard cost information for one unit of Product Zeta. Direct materials 4kg @ $10/kg $40.00 Direct labour 2 hours @ $4/hour E8.00 Fixed overheads 3 hours @ $2.50 $7.50 The fixed overheads are based on a budgeted expenditure of $75,000 and budgeted activity of 30,000 hours. Actual results for the period were recorded as follows. Production 9,000 units Materials - 33,600 kg E336,000 Labour - 16,500 hours $68,500 Fixed overheads $70,000 Required Calculate the direct material price and usage variances. ii. Calculate the direct labour rate and efficiency variancesStep by Step Solution
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