Question
Please include the formula you use so I can calculate them too. Thanks The following information has been provided by Andrews Ltd for the production
Please include the formula you use so I can calculate them too. Thanks
The following information has been provided by Andrews Ltd for the production and sale of 1000 units of one of its products in the first quarter of 2020.
Budget () | Actual | ||||
Sales revenue | 120,000 | 122,000 | |||
Less Raw materials | (47,200) | For 47,200 kg | (49,350) | For 45,562 kg | |
Less Labour | (23,600) | For 2,950 hrs | (23,963) | For 2,925 hrs | |
Less Fixed overheads | (21,500) | (20,750) | |||
Operating profit | 27,700 | 27,937 |
Required:
a) Compute the following variances and show whether each one is favourable or adverse.
(i) Material price variance;
(ii) Material usage variance;
(iii) Labour rate variance;
(iv) Labour efficiency variance;
(v) Sales price variance.
(vi) Fixed overhead variance;
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