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Unique Body Care Limited has a division that produoes Sodium Laureth Sulphate (SL5) concentrate which is a primaryr chemical in its production of shampo Time
Unique Body Care Limited has a division that produoes Sodium Laureth Sulphate (SL5) concentrate which is a primaryr chemical in its production of shampo Time IE': 2:18: Clea nsing products. The companyr had the foilowing budgeted standard costs to produce each litre of nal shampoo mnoentrate for the coming period: Sodium lauretl'r Sulphate [5le Standard prime costs: Standard Material Input cost per unit 0.1 kg $0.90 per kg $0.09 Standard labour costs 01 hour $45.00 per hour $4.50 Total standard product cost per unit $4.59 Due to interruptions in the supply chain over the past period. the company had actual costs that varied oonsidera biy from budget however managed to prod uoe 500.000 litres of nished product using the SL5 materials and direct labour as shown below. Actual costs: Units produced this period: 500,000 litres Direct material purchased: 75,000 Total cost: $82,500 Direct materlal used In production: 45,000 Cost per Kg: $1.10 Direct labour hours and total cost: 53,000 Total cost: $2,438,000 Note the standard unit ofproduction for this companyr is related to each LITRE of final shampoo concentrate. {i.e. 0.1 kg of SLS is used to produce 1 litre of output product). Required: Calculate the Direct Material Clues-it}r Variance for the period (3 Marks} NOTE FOR ALL VARIANCES INDICATE IF 11-IE VARIANCE IS FAVOURABLE OR UNFAVOURABLE BY ADDING AN F OR U AFI'ER 11-IE NUMBER. E.g. if you had a favourable variance of $100 enter 10F {no dollar signs are necessary and do NOT enter the whole Iword, just the tether after the number}. Only positive numbers may be entered as there are never negative variances only F or U variances
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