Question
To produce 1,000 units of the product, the standard prime costs are as follows: DM DM DM DM DL DL DL DL Materials Kilos Per
To produce 1,000 units of the product, the standard prime costs are as follows:
DM | DM | DM | DM | DL | DL | DL | DL |
Materials | Kilos | Per kilo | Amount | Type | Hours | Per hour | Amount |
A | 500 | 0.10 | 50 | X | 30 | 5 | 150 |
B | 350 | 0.20 | 70 | Y | 20 | 3 | 60 |
C | 400 | 0.30 | 120 | Z | 50 | 2 | 100 |
1,250 | 240 | 100 | 310 |
Factory overhead has been estimated at the normal capacity of 1,200 hours as follows: Fixed 1,200 Variable 2,400 In producing 10,000 units of the products, the company incurred factory overhead of 3,320 and the prime cost of;
DM | DM | DM | DM | DL | DL | DL | DL |
Materials | Kilos | Per kilo | Amount | Type | Hours | Per hour | Amount |
A | 6,000 | 0.09 | 540 | X | 275 | 5.10 | 1,402.50 |
B | 2,000 | 0.22 | 440 | Y | 241 | 2.70 | 650.70 |
C | 3,000 | 0.33 | 990 | Z | 594 | 1.95 | 1,158.30 |
11,000 | 1,970 | 1,110 | 3,211.50 |
1. Material mix variance is a. 70 b. (212) c. (430) d. (288) 2. Material yield variance is a. 70 b. (212) c. (430) d. (288) 3. Material price variance is a. 70 b. (212) c. (430) d. (288) 4. Labor rate variance is a. (155) b. (74.50) c. 217 d. 372 5. Labor efficiency variance is a. 186 b. (74.50) c. 217 d. (155) 6. Labor mix variance is a. 186 b. (74.50) c. 341 d. (155) 7. Labor yield variance is a. 372 b. (74.50) c. 341 d. (155) 8. Factory overhead controllable variance is a. 360 b. 690 c. (100) d. 90 9. Factory overhead volume variance is a. 360 b. 690 c. (100) d. 90 10. Factory overhead efficiency variance is a. 360 b. 690 c. (100) d. 90 11. Factory overhead yield variance is a. 360 b. 690 c. (100) d. 90 Show solution pls
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