QUESTION 1

ABC Berhad operates a standard costing system and analysis of variances is made every month. The standard cost card is as follows for a unit of product:

Direct materials0.5kg at RM 4/kg

Direct labour2 hours at RM 2/hour

Variable overheads2 hours at RM 0.30/hour

Fixed overhead2 hours at RM 3.70/hour

Standard selling priceRM20.00

Budgeted output for the month of January 2021 was 5,100 units. Actual results were as follows:

Production and sales units4,850 units.

The revenue wasRM95,600

Materials purchased amounted to 2,300 kg at a total cost of RM9,800

Material used was 2,200 kg.

Direct Labour 8,500 hours at a cost of RM16,800

Variable overheads amounted to RM2,600

Fixed overheads amounted to RM42,300

Calculate ALL variancesQUESTION 1

ABC Berhad operates a standard costing system and analysis of variances is made every month. The standard cost card is as follows for a unit of product:

Direct materials0.5kg at RM 4/kg

Direct labour2 hours at RM 2/hour

Variable overheads2 hours at RM 0.30/hour

Fixed overhead2 hours at RM 3.70/hour

Standard selling priceRM20.00

Budgeted output for the month of January 2021 was 5,100 units. Actual results were as follows:

Production and sales units4,850 units.

The revenue wasRM95,600

Materials purchased amounted to 2,300 kg at a total cost of RM9,800

Material used was 2,200 kg.

Direct Labour 8,500 hours at a cost of RM16,800

Variable overheads amounted to RM2,600

Fixed overheads amounted to RM42,300

Calculate ALL variances

1. Material Price Variance
2. Material Usage Variance
3. Labour Rate Variance
4. Labour Efficiency Variance
5. Variable Overhead Expenditure Variance
6. Variable Overhead Efficiency Variance
7. Fixed Overhead Expenditure Variance
8. Fixed Overhead Efficiency Variance
9. Fixed Overhead Capacity Variance
10. Sales Price Variance
11. Sales Volume Variance