Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Management Accounting question. QUESTION 1 Adom Ltd manufactures quality blocks for the housing industry in Ghana. It operates a standard marginal costing system. The following

image text in transcribed

Management Accounting question.

QUESTION 1 Adom Ltd manufactures quality blocks for the housing industry in Ghana. It operates a standard marginal costing system. The following standard costs, volume and revenue data for the quarter ending 31 October, 2015 are provided: Standard cost card: Budgeted sales for the quarter: 62,500 blocks Variable overheads are absorbed at the rate of GH 0.50 per direct labour hour. Fixed production overheard for the quarter are estimated to be GH 78,500 The following actual results were recorded for the quarter just ended 31 October, 2015: Required: Calculate the following variances for the quarter just ended 30 September, 2015 the: i. Price and usage variances for each material; ii. Mix and yield variance for each material; iii. Labour rate, labour efficiency and idle time variances; iv. Variable overheads expenditure and variable overheads efficiency variances. v. Distinguish between Planning and Operational variances

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

Understanding And Auditing IT Systems Volume 1

Authors: Young-Woon Min

2nd Edition

978-1257124084

More Books

Students also viewed these Accounting questions

Question

What is meant by a hierarchy of objectives? Explain.

Answered: 1 week ago

Question

Between R Z and NRZ , which requires higher bandwidth?

Answered: 1 week ago