Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Horison Ltd. manufactures a product called Lima. The standard cost set by Horison for each unit of Lima is as follow: Inspection of the management

image text in transcribed
Horison Ltd. manufactures a product called "Lima". The standard cost set by Horison for each unit of Lima is as follow: Inspection of the management account information revealed the following for the 2022 financial year: - Labourers worked 650000 hours. - Direct material Alpha: - Purchased 670000kg for R10 720000. - Used 655000kg - Direct material Beta: Purchased 2300000kg for R46 000000 - Used 2100000kg - 130000 unit of Lima have been manufactured. Required: Calculate the following variances for the 2022 financial year: 3.1. Material price variance for Alpha (2.5 marks) 3.2. Material usage variance for Beta (2.5 marks) 3.3. Material mix variance (10 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Knowledge Audit Its Learning Lessons

Authors: Ajit Kumar

1st Edition

3659494836, 978-3659494833

More Books

Students also viewed these Accounting questions

Question

Evaluate the importance of the employee handbook.

Answered: 1 week ago

Question

Discuss the steps in the progressive discipline approach.

Answered: 1 week ago