Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 2 Direct Material and Labour Variance: Manufacturer 10 marks During September, Wonderland Ltd material purchases amount to 7,000 kilograms at a price of $8.00
Question 2 Direct Material and Labour Variance: Manufacturer 10 marks During September, Wonderland Ltd material purchases amount to 7,000 kilograms at a price of $8.00 per kg. Actual costs incurred in the production of 2,700 units were as follows: Direct labour Direct material $118,611 $51,000 $19.10 per hour $8.00 per kilogram The standard for one unit of product is as follows: Direct Labour Direct material Quantity 2.5 hours per unit 2.5 kilograms per unit Price/Rate $21 per hour $7 per kilogram Required: Calculate the following variance, indicating whether each variance is favorable or unfavorable: (a) Direct material price variance. (2 marks) (b) Direct material quantity variance. (2 72 marks) (2 42 marks) (c) Direct labour efficiency variance. (d) Direct labour rate variance. (2 72 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started