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PT Ruler Dunia has prepared a 2011 performance report which contains the variance value fer the use of Direct Materials and Direct Labor. Total Variance
PT Ruler Dunia has prepared a 2011 performance report which contains the variance value fer the use of Direct Materials and Direct Labor. Total Variance Value for: - Direct Raw Material is IDR 53,D,tl {Favorable} - Direct Labor is IDR 35,0,ll [Favorable] The budget for direct materials and direct labor fer 211:1 are generally in the range of Rp. T billion. The management of PT Ruler Dunia uses the approachManagement by Exceptionand set the tolerance threshold is 111% of the budget. The standard cost per product unit for Direct Materials and Direct Labor is as follows: ~23 kg of Direct Raw Materials, at a price of IDR lJlll per kg - Direct Labor for 1.3 hours, at a price of IDR 2303!"! per hour During the year Zll. PT Ruler Dunia produced 9.51m units of product wilh additional information: - Purchase and use of 32,511\"! kg Direct Raw Materials purchased at an average price of Rp 1345100 per kg. - The use of direct labor is 14.4[10 hours with an average rate of IDR 33.ti per hour. Regulated: a. Based on information from the Exl Performance Report. does the Management of PT Lunar Java need to worry about the total variance value? Explain b. Based on the additional data available in the problem, do your own calculations on: 1. Price, Quantity. and Total Variance for Direct Raw Materials, and their comparison to the budget value 2. Price, Quantity. and Total Variance for Direct Labor. and their comparison to the budget value c. Based on your answer to point b above. does the Management of PT Lunar Java need to worryr about the price and quantity variance for Direct Raw Materials and Direct Labor? Explain
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