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Manufacturing costs Standard Quantity Standard Price Standard Unit cost Direct Materials 10 metre $2.50 per metre $25.00 Direct Labour 2 hours $10.00 per hour $20.00
Manufacturing costs | Standard Quantity | Standard Price | Standard Unit cost |
Direct Materials | 10 metre | $2.50 per metre | $25.00 |
Direct Labour | 2 hours | $10.00 per hour | $20.00 |
Manufacturing Overhead |
|
|
|
Variable | 1 hours | $5.00 per hour | $5.00 |
Fixed |
|
| $10.00 |
Standard Manufacturing cost per unit |
|
| $60.00 |
- Calculate the following variances and label them as either favourable (F) or unfavourable (U). Show all workings: [12 marks]
- Direct Materials Price Variance
- Direct Materials Quantity/Volume Variance
- Total Direct Materials Variance
- Direct Labour Price Variance
- Direct Labour Quantity/Volume/Efficiency Variance
- Total Direct Labour Variance
- 2.How can the analysis of budget variances lead to continuous improvement in an organisation? [2 marks]
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