You have been given the following information about the production of Theta Co. and are asked to provide the plant manager with information for a meeting with the vice-president of operations:

Standard Cost Card

Direct materials (3 kg at $6 per kilogram).............$18.00

Direct labour (2 hours at $5 per hour....................10.00

Variable overhead (2 hours at $3 per hour)..............6.00

Fixed overhead (2 hours at $7 per hour)................14.00

..............................................................$48.00

The following is a production report for the most recent period of operations:

Instructions
Answer the following questions:
(a) How many units were produced during the period?
(b) How many kilograms of raw material were purchased and used during the period?
(c) What was the actual cost per kilogram of raw materials?
(d) How many actual direct labour hours were worked during the period?
(e) What was the actual rate paid per direct labour hour?
(f) What was the actual variable overhead cost incurred during the period?
(g) What is the total fixed cost in the company's flexible budget?

Transcribed Image Text:

Tota PricelVariances Price/ Spending/ Quantity/ Budget Efficiency Volume Costs Direct materials Direct labour Variable overhead Fixed overhead Standard Cost Rate $ 9,000 F 7,000 F $450,000 $6,900 U 250,0004,860 150,000 364,000 $1,300 U 500 U $14,000 U