Dinozeera Bhd manufactures stuffed toys and one of their best selling product is GREENDINO. The company adopts the system of variance accounting for cost control and monitoring. The following information relates to the budgeted production and sales of 10,000 units for the quarter ended 30 September 2021: RM Direct material X (RM1.00 per kilogram) 100,000 Direct Material Y (RM5.00 per kilogram) 250,000 Direct labour (RM3.00 per hour) 150,000 Variable production overhead 25,000 Fixed production overhead 15,000 Both production overhead is absorbed based on direct labour hours and the standard selling price per unit is RM69.00. The actual production and sales recorded was 9,500 units and sold at a price 10% higher than the standard price. Production consumed 96,000 kg of material X costing RM115,200 and 48,000 kg of material Y costing RM225,600. Actual production uses 46,000 labour hours costing RM147,200. The actual variable overhead incurred was RM24,800 while the fixed production overhead incurred was RM17,500. Required: a. Prepare a standard cost card for one unit of GREENDINO. (3 marks) b. Calculate the following variances for the quarter ended 30 September 2021: 1. Direct material price and usage for material X and Y ii. Direct labour rate and efficiency lii. Variable production overhead expenditure and efficiency iv. Fixed production overhead expenditure and volume Sales margin price and volume (15 marks) V. c. Prepare the profit reconciliation statement for the quarter ended 30 September 2021. (3 marks) d. Provide TWO (2) justifications on the widely used of Current Standard as compared to deal Standard in most of the industries. (2 marks) (Total: 23 marks) Dinozeera Bhd manufactures stuffed toys and one of their best selling product is GREENDINO. The company adopts the system of variance accounting for cost control and monitoring. The following information relates to the budgeted production and sales of 10,000 units for the quarter ended 30 September 2021: RM Direct material X (RM1.00 per kilogram) 100,000 Direct Material Y (RM5.00 per kilogram) 250,000 Direct labour (RM3.00 per hour) 150,000 Variable production overhead 25,000 Fixed production overhead 15,000 Both production overhead is absorbed based on direct labour hours and the standard selling price per unit is RM69.00. The actual production and sales recorded was 9,500 units and sold at a price 10% higher than the standard price. Production consumed 96,000 kg of material X costing RM115,200 and 48,000 kg of material Y costing RM225,600. Actual production uses 46,000 labour hours costing RM147,200. The actual variable overhead incurred was RM24,800 while the fixed production overhead incurred was RM17,500. Required: a. Prepare a standard cost card for one unit of GREENDINO. (3 marks) b. Calculate the following variances for the quarter ended 30 September 2021: 1. Direct material price and usage for material X and Y ii. Direct labour rate and efficiency lii. Variable production overhead expenditure and efficiency iv. Fixed production overhead expenditure and volume Sales margin price and volume (15 marks) V. c. Prepare the profit reconciliation statement for the quarter ended 30 September 2021. (3 marks) d. Provide TWO (2) justifications on the widely used of Current Standard as compared to deal Standard in most of the industries. (2 marks) (Total: 23 marks)
