KOSMOS Company manufactures palm oil The following unitary standards have been set by the production staff and the controller Direct Material Direct Labor Quantity , 0 2 Liters Quantity , 0 1 hour Price , 3 per Liter Price , $6 per hour Actual costs incurred in the production of 20,000 gallons were as follows Direct $11 250 for 4,500 Liters Material Direct Labor $12,600 for 1,800 hours Required Using the variance formulas to compute the direct material and labor variances Indicate whether each variance is favorable or unfavorable (30marks) 2 Mention at least 3 reasons why each of these variances may have occurred (10 marks ) Question 2 ( 40 marlo) KOSMOS Company manufactures palm oil The following unitary standards have been set by the production stafT and the controller Direct leder Quantity, 0 2 Liters Quantity, 0 1 hour Price, $3 per Liter Price, S6 per hour Actual costs incurred in the production of 20,000 gallons were as follows Direct $11 250 for 4,500 Liters Material Direct Labor $12,600 for 1,800 hours Required 1 Using the variance formulas to compute the direct material and labor variances Indicate whether cach variance is favorable or unfavorable ( 30 marks ) 2 Mention at least 3 reasons why each of these variances may have occurred (10 marks)

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KOSMOS Company manufactures palm oil .. The following unitary standards have been set by the production staff and the controller Direct Material : Direct Labor

KOSMOS Company manufactures palm oil .. The following unitary standards have been set by the production staff and the controller Direct Material : Direct Labor : Quantity , 0.2 Liters Quantity , 0.1 hour Price , 3 per Liter Price , $6 per hour Actual costs incurred in the production of 20,000 gallons were as follows : Direct $11.250 for 4,500 Liters Material : Direct Labor $12,600 for 1,800 hours Required : Using the variance formulas to compute the direct - material and labor variances . Indicate whether each variance is favorable or unfavorable . (30marks) 2- Mention at least 3 reasons why each of these variances may have occurred . (10 marks )

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Question 2 ( 40 marlo) KOSMOS Company manufactures palm oil.. The following unitary standards have been set by the production stafT and the controller: Direct leder: Quantity, 0.2 Liters Quantity, 0.1 hour Price, $3 per Liter Price, S6 per hour Actual costs incurred in the production of 20,000 gallons were as follows: Direct $11.250 for 4,500 Liters Material: Direct Labor $12,600 for 1,800 hours Required: 1. Using the variance formulas to compute the direct-material and labor variances. Indicate whether cach variance is favorable or unfavorable.( 30 marks ) 2. Mention at least 3 reasons why each of these variances may have occurred. (10 marks)