Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 Marked out of 10.00 Question text A company manufactures a product called Jest, and the entire product is sold as soon as it

Question 1 Marked out of 10.00

Question text A company manufactures a product called Jest, and the entire product is sold as soon as it is produced. There are no opening or closing inventories and work in progress is negligible. The company operates a standard costing system and analysis of variances is made every month. The standard cost card for the product, in the month of October, is as follows: Standard cost for product Jest: Direct materials (0.5 kilos at 4 per kilo) 2.0 Direct wages (2 hours at 2.00 per hour) 4.0 Variable O/Hs (2 hours at 0.30 per hour 0.6 Fixed O/Hs (2 hours at 3.70 per hour) 7.4 Standard cost 14.0 Standard profit margin 6.0 Standing selling price 20.0 Budgeted output for October was 5,100 units. Actual results for October were as follows: 4,850 units were produced and sold for 95,600 Materials consumed in production amounted to 2,300 kilos at a total cost of 9,800 Labour hours paid for amounted to 8,500 hours at a cost of 16,800 Variable overheads amounted to 2,600 Fixed overheads amounted to 42,300 Required Calculate the following variances for the month of October. 1) Material price and usage variances 2) Labour rate and efficiency variances 3)Variable overheads expenditure and efficiency variances

4) Sales price and volume variances

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_2

Step: 3

blur-text-image_3

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

Modern Management Concepts And Skills

Authors: Samuel Certo, S Certo

15th global Edition

978-1292265193, 1292265191

More Books

Students also viewed these Accounting questions

Question

What are the eight types of intelligence? (p. 65)

Answered: 1 week ago