27. The standard set for material consumption was 100 kg e 3.25 per unit. In a cost period: Opening stock was 100 kg @t 3.25 per unit. Purchases made 500 kg @t 3.15 per unit. Consumption 110units Calculate: a)Usage Variance b)Price Variance 1) When variance is calculated at point of purchase 2) When variance is calculated at point of issue on FIFO basis 3) When variance is calculated at point of issue on LIFO

27. The standard set for material consumption was 100 kg e 3.25 per unit. In a cost period: Opening stock was 100 kg @t 3.25 per unit. Purchases made 500 kg @t 3.15 per unit. Consumption 110units Calculate: a)Usage Variance b)Price Variance 1) When variance is calculated at point of purchase 2) When variance is calculated at point of issue on FIFO basis 3) When variance is calculated at point of issue on LIFO

Name: 27. The standard set for material consumption was 100 kg er 3.25 per
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Description: 27. The standard set for material consumption was 100 kg er 3.25 per unit.In a cost period:Opening stock was 100 kg er3.25 per unit.Purchases made 500 kg @t 3.15 per unit.Consumption 110unitsCalculate: a)Usage Variance b)Price Variance1) When varian

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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2.2 Use the information provided below to calculate the following variances for May 2021. Each answer must indicate whether the variance is favourable or unfavourable. 2.2.1 Material quantity variance 2.2.2 Labour efficiency variance 2.2.3 Total labour variance (without using the labour rate or efficiency variances) INFORMATION The expected production and standard costs for each unit of Product A manufactured by Luton Manufacturers are as follows: Expected production 30 000 units Direct material 15 kg at R8.60 per kg Direct labour 3 hours at R8 per hour Actual figures of Luton Manufacturers for Product A for May 2021 are as follows: Production 27 500 units Direct material used 432 000kg at R8.40 per kg Direct labour incurred 80 000 hours at R8.40 per hour
17. The cost price factor shows a variance of: a) P95,250 unfavorable b) P61,500 unfavorable c) P42,000 unfavorable d) P33,750 favorable
G.) Price Variance H.) Price-Quantity Variance I.) Cost Variance J.) Cost-Quantity Variance
Case 10-17 (Algo) Working Backwards from Variance Data )LO10-1, LO10-2, LO10-3)
18
Material price variance = (Standard price per gram - Actual price per gram) * Actual quantity of material used = (P5 - P6) * 14000 = P14,000 (Unfavourable) Material efficiency variance = (Standard quantity of materials - Actual material quantity used) * Standard price per gram = (12000 - 14000) * 5 = P10,000 (Unfavourable) Total materials cost variance = Materials price variance + Materials efficiency variance = (P14,000) + (P10,000) = P24,000 (Unfavourable) For Direct labour, Standard labour hours allowed for actual production = Actual units produced * Standard hours per unit = 2000 units * 1.8 hours = 3600 hours Direct labour rate variance = (Standard labour rate - Actual labour rate) * Actual labour hours used = (P100 - P97.5) * 4000 = P10,000 (Favourable) Direct labour efficiency variance = (Standard labour hours - Actual labour hours) * Standard labour rate = (3600 - 4000) * 100 = P40,000 (Unfavourable) Total direct labour cost variance = Direct labour rate variance + Direct…
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1.3 REQUIRED Use the information provided below to calculate the following variances. Each answer must indicate whether the variance is favourable or unfavourable. 1.3.1 Material quantity variance 1.3.2 Labour rate variance 1.3.3 Variable manufacturing overheads efficiency variance INFORMATION The standard variable costs per unit (with a standard quantity of 25 000 units), set by Kidman Manufacturers, for Product M are as follows: Materials Labour Variable overhead 4 kg at R10 per kg 2 hours at R20 per hour 2 hours at R12 per hour The actual costs for October 2022 are as follows: Materials Materials Labour Variable overhead 100 000 kg were purchased for R980 000 78 000 kg were used to produce 20 000 units of Product M 41 000 labour hours at R19.60 per hour R500 200 incurred
1. Compute for Spending Variance 2. Compute for Variable Overhead Efficiency Variance 3. Compute for Controllable Variance
D.) Cost Price Variance E.) Cost Volume Variance F.) Total Gross Profit Variance G.) Price Variance H.) Price-Quantity Variance I.) Cost Variance J.) Cost-Quantity Variance
Favorable or Unfavorable? Please assist.
Indicate whether each statement is true or false.1.a) DM quantity variance is favorable when the actual price is lower than the standardprice/pound. (……….)1.b) DL rate variance is unfavorable when the actual rate per hour was greater than thestandard rate per hour. (……….)