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Wroong answer will down voted Please solve correctly . 12. Material , Labour, VOH and FOH Variance Computation N12 Sunglow Limited manufactures and sells a
Wroong answer will down voted Please solve correctly .
12. Material , Labour, VOH and FOH Variance Computation N12 Sunglow Limited manufactures and sells a single product. From the records of the Company the following information is Particulars available for a month. The Standard Cost comprises the following - Unit -X 8 Direct Material -Y 24 16 --Z 320 1,680 400 2,400 1,600 400 600 5,000 Purchase Price per unit Direct Wages ( 40 per hour) Variable Overhead (25% of Direct Wages) Fixed Overhead (based on budgeted production of 10,000 units of the Final Product per month) Total The Budgeted Seling Price is 37,500 each and the Budgeted Sales for the month were 14,000 units. The following were the transactions for the month: Direct Material Units 44,000 42 Y 1,40,000 71 Z 60,000 24 Direct Wages: 390,00,000 (3,98,000 hours) Overheads: Variable 2,00,000, Fixed 3,00,000. Production: 11,000 Units Sales: 9,000 units at 700 each and 3,500 units at 750 each. Issued Units 82,400 2,46,400 1,64,000 Required: Calculate (i) Material Price Variance; (ii) Material Mix Variance; (iii) Labour Rate Variance (iv) Labour Efficiency Variance (v) Variable Overhead Efficiency Variance; and (vi) Fixed Overhead Efficiency VarianceStep by Step Solution
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