Question
Hello i need help to answer this pls The company ROULON manufactures and sells a single product from a single raw material. In its production
Hello i need help to answer this pls
The company ROULON manufactures and sells a single product from a single raw material.
In its production budget, the company planned to manufacture 2,200 units of this product in June. According to the use observed in the previous months by using its usual supplier, it planned that the manufacture of each unit would consume 4kg of raw material at 8/ kg, that is to say a cost of raw material of 32per unit produced.
In reality, the company produced 2,230 units in June. It has called upon a new supplier who sells a raw material of better quality than the usual supplier at 8.20 per kg. The total cost for this raw material was 69,454 in June.
Calculate the total raw material variance for June and break it down into sub-variances. How do you explain the results of your calculations? Do you recommend keeping the new supplier
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