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company manufactures two components in one of its factories. Material A is one of several materials used in the manufacture of both components. The standard
company manufactures two components in one of its factories. Material A is one of several materials used in the manufacture of both components. The standard direct labour hours per unit of production and budgeied gmduction qualities for a 13-week period were as follows: Standard Direct Labour Budgeted Production Hours Qualities Component X 0.30 36,000 units Component Y 0.56 22, 000 units The standard wage rate for all direct workers was Shs 90.60 per hour. Throughout the 13-weck period, 53 direct workers were employed, working a standard 40-hour week. The following actual information for the 13-week period is available: Production 35,000 units Component Y, 25,000 units Direct wages paid, Shs. 2,487,400 Material A purchases, 47,000 kilos costing shs. 85,110 Material A price variance, shs.430F Material A usage (component X), 33,426 kilos Material A usage variance (component X), shs. 320.32 Required: i.) Calculate the standard purchase price for Material A for the period and the standard usage of Material A per unit of production of component X. (6 marks) ii.) Calculate the direct labour variances for the period
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