10. XYZ Corp operates under system of standard Costing within a single costcentre. The standard cost details are as follows:Direct material – 5kg @ $4.2Direct labor - 3 hours @ $3Factory overhead - $1.2 per labor hour.The budgeted production schedule for the month of May,2019 was 40,000 units.However, 40,960 units were completed during the month. No opening or closingWork-in-progress. Purchases during the month were 225,000 kg of material @$4.5 per kg.Actual Production and Sales record for the month:Materials used 205,600 kgsDirect Labor Cost (121,200 hrs) $ 387,840Factory Overhead Cost $ 100,000Sales 40,000 units.Selling Price shall have a mark-up of 20% on selling price.1. Calculated material variance.2. Calculated Labor Variances.3. Calculated Factory overhead Variance.4. Prepare Income Statement for May 2019 showing actual Gross Margin.

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Description: 10. XYZ Corp operates under system of standard Costing within a single costcentre. The standard cost details are as follows:Direct material – 5kg @ $4.2Direct labor - 3 hours @ $3Factory overhead - $1.2 per labor hour.The budgeted production schedul

Variances are calculated in order to compare the actual result with the standard result.

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10. XYZ Corp operates under system of standard Costing within a single cost centre. The standard cost details are as follows: Direct material - 5kg @ $4.2 Direct labor - 3 hours @ $3 Factory overhead - $1.2 per labor hour. The budgeted production schedule for the month of May,2019 was 40,000 units. However, 40,960 units were completed during the month. No opening or closing Work-in-progress. Purchases during the month were 225,000 kg of material @ $4.5 per kg.

10. XYZ Corp operates under system of standard Costing within a single cost centre. The standard cost details are as follows: Direct material - 5kg @ $4.2 Direct labor - 3 hours @ $3 Factory overhead - $1.2 per labor hour. The budgeted production schedule for the month of May,2019 was 40,000 units. However, 40,960 units were completed during the month. No opening or closing Work-in-progress. Purchases during the month were 225,000 kg of material @ $4.5 per kg.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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