Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the information provided below to calculate the following variance. state whether the variance is favourable or unfavourable. Labour efficiency variance Royal Ltd uses the

Use the information provided below to calculate the following variance. state whether the variance is favourable or unfavourable.

Labour efficiency variance

Royal Ltd uses the standard costing system. The standards and actual information for May 2022 for the only product that it manufactures are as follows:

standard:

direct materials 4kg @ $7 per kg
direct labour 5 hours @ $ 60 per hour
variable manufacturing overheads R12 per labour hour
normal production 12 000 units per month

Actual information for May 2022:

Direct materials used 43 000kg @ $ 7.50 per kg
Direct labour 56 000 hours @ $58 per hour
Variable manufacturing overheads $649 600
Production 11 000 units manufactured

Direct materials used 43 000kg @ $ 7.50 per kg Direct labour 56 000 hours @ $58 per hour Variable manufacturing overheads $649 600 Production 11 000 units manufactured

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

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

3rd Edition

0471372668, 978-0471372660

More Books

Students also viewed these Accounting questions