CAT 1 AND 2

ATTEMPT ALL THE QUESTIONS

(1 ) 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:

(i) The material price variance

(ii) The material usage variance

(iii) The total material cost variance

(iv) The labour rate variance

(v) The labour efficiency variance

(vi) The total labour cost variance

(vii) The total cost variance