Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Perabot Ofis manufactures a single line of furniture for the export market. For cost control purposes, the company uses standard costing The total budgeted factory

image text in transcribed
image text in transcribed
image text in transcribed
Perabot Ofis manufactures a single line of furniture for the export market. For cost control purposes, the company uses standard costing The total budgeted factory overhead cost was RM17.500. This was based on production of 1,200 units of the overhead cost wasted overhead. 40 variable The production information at the end of june 2018 is as follows: Standard RM Actual RM 7.50 7.56 7.56 Direct materials: Standard: 10 kgs/unit at RM7.50/kg Actual: 15,000 kgs purchased at RM7.56/kg. 11,800 kgs used in production Direct labour: Standard: 4 hours/unit at RM6/hour Actual: 5,400 hours at RM5.80/hour Manufacturing overhead: Standard: 4 hours/unit at RM2/hour Actual Variable OH Actual Fixed OH 6.00 5.80 2.00 7,400 11,100 1,300 units were produced in June 2018. Actual input and overhead costs: Actual 15,000 kgs 11,800 kgs 5,400 hours Direct materials - purchased - used Direct labour hours Manufacturing overhead - hours worked - total variable cost - total fixed cost 5,400 hours RM7,400 RM11,100 Compute the following variances: Compute the following variances: 1. Materials price variance 2. Materials efficiency variance 3. Total direct material variance 4. Labour price variance 5. Labour efficiency variance 6. Total direct labour variance 7. Variable expenditure variance 8. Variable efficiency variance 9. Fixed overhead expenditure variance

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

Fundamentals Of Entrepreneurial Finance

Authors: Marco Da Rin, Thomas Hellmann

8th Edition

0199744750, 9780199744756

More Books

Students also viewed these Accounting questions