You are employed at Jamaica Knitting Company Ltd as a cost accountant. The company operates a standard costing system which provides valuable information that is crucial to its costing operations. The following information with regards to one of its products was presented to you for the month of August 2017: Direct raw materials 4 metres at $150 each Direct labour 3 hours at $120 each Total Actual results for the month: Opening stock direct raw materials Production Standard cost per unit $ Required: 600 360 960 Direct raw materials purchased was 58,250 metres at a cost of $8,504,500. Closing stock of direct raw materials 3,000 metres. Direct labour 44,920 hours at a cost of $5,615,000. 5,000 metres. 15,000 units (1) Calculate the variance on direct raw material price for August 2017. (3 marks) Calculate the direct raw material usage variance for August 2017. (4 marks) (11) Determine the direct rate efficiency variance. (iv) Determine the direct labour efficiency variance. (4 marks) (4 marks) Page Requ

You are employed at Jamaica Knitting Company Lid as a cost accountant. The company operates a standard coscing system which provides valuable information that is crucial to its costing operations. The following information with regards to one of its products was presented to you for the month of August 2017: Required: (i) Calculate the variance on direct raw material price for August 2017. (3 marics) (ii) Calculate the direct raw material usage variance for August 2017. (4 marks) (iii) Determine the direct rate efficiency variance. (4 marks) (iv) Determine the direct labour efficiency variance. (4 marks)