Question 2 Sadio Factory makes and sells soccer medals LFC for which the standard cost is...

Transcribed Image Text:

Question 2 Sadio Factory makes and sells soccer medals "LFC" for which the standard cost is as follows: Direct materials - 4kg at RM12 per kg Direct labour - 5 hours at RM7 per hour Variable manufacturing overhead - 5 direct labour hours at RM2 per hour During the month of April 2021, Sadio Factory produced 18,000 units of "LFC" medals. Actual cost incurred was: Direct material purchased and used was 76,000 kg at RM11 per kg. Direct labour hours worked was 84,000 hours at RM7.20 per hour Variable manufacturing overhead incurred was RM172,000 Required: a. Calculate direct material price variance, direct material quantity variance and total material variance. b. Calculate direct labour rate variance, direct labour efficiency variance and total labour variance. c. Calculate variable overhead spending variance, variable overhead efficiency variance and total variable overhead variance. d. Interpret direct material and direct labour variances. Question 2 Sadio Factory makes and sells soccer medals "LFC" for which the standard cost is as follows: Direct materials - 4kg at RM12 per kg Direct labour - 5 hours at RM7 per hour Variable manufacturing overhead - 5 direct labour hours at RM2 per hour During the month of April 2021, Sadio Factory produced 18,000 units of "LFC" medals. Actual cost incurred was: Direct material purchased and used was 76,000 kg at RM11 per kg. Direct labour hours worked was 84,000 hours at RM7.20 per hour Variable manufacturing overhead incurred was RM172,000 Required: a. Calculate direct material price variance, direct material quantity variance and total material variance. b. Calculate direct labour rate variance, direct labour efficiency variance and total labour variance. c. Calculate variable overhead spending variance, variable overhead efficiency variance and total variable overhead variance. d. Interpret direct material and direct labour variances.