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Cost Accounting question As cost accountant of Rackets Ltd, you estimate the standard cost of making one unit is as follows: Direct material 4 kilos

Cost Accounting question

As cost accountant of Rackets Ltd, you estimate the standard cost of making one unit is as follows:

Direct material 4 kilos at Ksh7 per kilo Direct wages 5 hours at ksh 10 per hour The actual cost of a batch of 1000 units was: Direct material ksh 28960 (4328 kgs) Direct wages ksh50200 (5370 hours) (a) Calculate the following: (i) The material price variance [2 marks] (ii) The material usage variance [2 marks] ( (iv) The labour rate variance [2 marks] (v) The labour efficiency variance [2 marks] (vii) The total cost variance [2 marks]

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