Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 2: 25 marks SHOW ALL SUPPORTING CALCULATIONS FOR THIS PROBLEM. NO MARKS WILL BE AWARDED FOR ANSWERS TO THE PROBLEMS UNSUPPORTED BY CLEARLY SHOWN

image text in transcribed

QUESTION 2: 25 marks SHOW ALL SUPPORTING CALCULATIONS FOR THIS PROBLEM. NO MARKS WILL BE AWARDED FOR ANSWERS TO THE PROBLEMS UNSUPPORTED BY CLEARLY SHOWN CALCULATIONS. ROUND ALL CALCULATIONS UP TO TWO DECIMAL PLACES. Hasak Corp makes 100 kg containers of vegetable seeds, and has the following unit standard costs for direct materials and direct labour: Direct materials (40 kg @$8.00 per kg) $320.00 Direct labour (0.70 hours at $16.00 per hour) $11.20 Total standard costs per 100 kg container: $331.20 The following activities were recorded in June: 1. 2,700 containers were manufactured 2. 64,000 kg of materials costing $61,000 were purchased. 3. 164,000 kg of materials were used. 4. $ 16,000 was paid for 410 hours of direct labour. There were neither beginning nor ending WIP inventories on hand. Required: a) Compute the direct materials variances. 10 marks b) Compute the direct labour variances. 10 marks c) Suggest rational explanations for each variance. 5 marks

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

Step: 3

blur-text-image

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

More Books

Students also viewed these Accounting questions