Question
FBC(Pty) manufactures one product, Product X. You were given the following information for period 4. Product X has a standard material cost as follows. 10kg
FBC(Pty) manufactures one product, Product X. You were given the following information for period 4. Product X has a standard material cost as follows. 10kg of material Y at P10 per kg =P100 per unit of X. During period 4, 1000 units of X were manufactured using 11700 kg of material Y which cost P98631. The standard labour cost of product X is as follows, 2 hours of grade Z labour at P10 per hour=P20 per unit of product X. During period 4 , 1000 units of product X were made and the labour of grade Z was P17825 for 2300 hours of work. Calculate the following variances, material price variance, material usage variance, labor rate variance and labor efficiency variance
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