Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please dont solve in paper and solve all question since they are related Question - 3 - Delta Production Company Delta production Company is manufacturing
please dont solve in paper and solve all question since they are related Question - 3 - Delta Production Company Delta production Company is manufacturing different types of products. Company is using Standard costing as a control technique which compares standard costs and revenues with actual results to obtain variances which are used to improve performance. The following standard cost is related to one of their popular product DT. Types of Cost Standard quantity Standard price Direct materials 0.8 kilos OMR 12 per kilo Direct labour 0.5 hours OMR 6 per hour The company has actually produced 12000 units of DT in the Month of December using 6,500 kgs of direct materials at total cost of OMR 62000. The total 2200 labour hours are used at a total cost of OMR 25600 Calculate: a) Direct material Price and Usage variance. b) Direct labour rate and Efficiency Variance. 5 Marks 5 Marks c) Evaluate the reasons of the variances calculated in a and b above and discuss if there is any interrelation between them. 5 Marks d) Standard Costing is very important control tool, evaluate the importance of it in budgetary process within the Delta Production company. 5 Marks (Total- 20 Marks
please dont solve in paper
and solve all question since they are related
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started