Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can you please assist QUESTION 2 (25 Marks) 1 REQUIRED Use the information provided below to calculate the following variances: 1.1 Material mix variance marks)
can you please assist
QUESTION 2 (25 Marks) 1 REQUIRED Use the information provided below to calculate the following variances: 1.1 Material mix variance marks) -1.2 Material yield variance (3 marks) -1.3 Fixed manufacturing overheads volume capacity variance (3 marks) -1.4 Fixed manufacturing overheads volume efficiency variance. (3 marks) Note: Each answer must indicate whether the variance is favourable or unfavourable. INFORMATION The following figures were extracted from the budgeted statement of comprehensive income of Maverick Limited for May 2018, a normal production month in which 40 000 units are expected to be produced: R Materials: 60 000 Nix (20 000 metres at R3 per metre) 140 000 Max (20 000 metres at R7 per metre) 800 000 Direct labour (20 000 hours at R40 per hour) 400 000 Fixed overheads The actual production for May 2018 was 48 000 units and the following is an extract of the statement of comprehensive income: R Materials: 64 000 Nix (32 000 metres at R2 per metre) 160 000 Max (20 000 metres at R8 per metre) 1 078 750 Direct labour (25 000 hours at R43.15 per hour) 360 400 Fixed overheadsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started