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SP Co. produces a single product and the standard cost is: Direct Material 6 kilos @ RM2 per kilo Direct Labour 5 hours @
SP Co. produces a single product and the standard cost is: Direct Material 6 kilos @ RM2 per kilo Direct Labour 5 hours @ RM6 per hour Budgeted Production is 2,000 units per period but actual production for period 1 is only 1800 units. The actual costs for period 1 are: Direct Materials 12,600 kilos Direct Labour 9900 hours (a) (b) RM 12 30 Calculate for period 1: RM 27,720 RM 60,390 (i) (ii) (iii) The direct material cost variance The direct material price variance The direct material usage variance The direct labour cost variance The direct labour rate variance (iv) (v) (vi) The direct labour efficiency variance Give TWO (2) possible reasons for the material and labour variances.
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Given the information provided Standard Direct Material Cost 6 kilos RM2kilo RM12unit Standard Direct Labour Cost 5 hours RM6hour RM30unit a Calculati...Get Instant Access to Expert-Tailored Solutions
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