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What are the Actual hours worked? What is the Actual Wage rate per hour? RU Limited operates a system of standard costing in respect of
What are the Actual hours worked? What is the Actual Wage rate per hour?
RU Limited operates a system of standard costing in respect of one its products which is manufactured within a single cost centre. The standard price of material is N$20 per litre. The standard wage rate is N$ 12 per hour and 5 hours are allowed to produce on unit Fixed production overhead is absorbed at the rate of 100% of wages cost. During the month of September 2020 the following took place: N$ Actual price (paid for materials purchased) 19.50 per litre Total direct wages cost 156 000 Fixed production overhead 158 000 Variances N$ Unfavourable (U) Favour (F) 80 000 5 000 5 760 Type Direct material price Direct material usage Direct labour rate Direct labour efficiency Fixed production overhead expenditure 2 760 8 000Step by Step Solution
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