Question
Overheads cost Budget Actual Production units 10,000 11,500 Direct material R 30,000 R 40,000 Direct labour R 18,000 R 19,000 Indirect material R 15,000 R
Overheads cost
Budget
Actual
Production units
10,000
11,500
Direct material
R
30,000
R
40,000
Direct labour
R
18,000
R
19,000
Indirect material
R
15,000
R
16,000
Electricity
R
32,000
R
35,800
Finance cost
R
3,000
R
7,000
Total cost
R
98,000
R
220,000
Additional Information:
Actual units of 11,500 were produced for the month.
Budgeted electricity cost at 15,000 units amounted to R38,000.
Property tax is fixed in nature. All other expenses vary with units produced.
What is the Electricity cost variance according to the activity level adjusted flexible budget?
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Psychology Applied To Teaching
Authors: Jack Snowman, Rick McCown
14th Edition
1285734556, 9781285734552
