Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

REQUIRED Use the information given below to calculate the following variances. In each case also state whether the variance is favourable or unfavourable. 2 .

REQUIRED
Use the information given below to calculate the following variances. In each case also state whether the variance is favourable or unfavourable.
2.2.1 Material quantity variance
(3 marks)
2.2.2 Total labour variance (without using the labour rate and efficiency variances)
(3 marks)
2.2.3 Variable manufacturing overheads expenditure variance
(3 marks)
INFORMATION
Sona Manufacturers uses the standard costing system. The standards are as follows:
\table[[Direct material,3kg @ R8 per kg],[Labour,5 hours at R100 per hour],[Variable manufacturing overheads,R20 per labour hour],[Fixed overheads,R30000],[Normal production,19000 units]]
\table[[Actual information for March 2024:,],[Direct material used,61000kg at R7.80 per kg
image text in transcribed

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

Contemporary Auditing

Authors: Michael C. Knapp

11th edition

1305970810, 9781337514811, 1337514810, 978-1305970816

More Books

Students also viewed these Accounting questions

Question

1 Why is job analysis important?

Answered: 1 week ago