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A company manufactures one product, and the product is sold as soon as it is produced. There Standar cost card $ Direct materials Direct wages Variable overheads Fixed overhead standard cost standard profit standard selling price 0.5 kgs at $4.00 per kg 2 hrs at $2.00 per hr 2 hrs at $0.30 per hr 2 hrs at $3.70 per hr Budgeted output for January was 5,100 units. Actual results for January were as follows: Production of 4,850 units was sold for $95,600. Materials consumed in production amounted to 2,300 kgs at a total cost of $9,800. labour hours paid for amounted to 8,500 hrs at a cost of $16,800. Actual operating hrs amounted to 8000. (to be used when calculating variable overhead). Variable overheads amounted to $2,600 Fixed Overheads amounted to $42,300. Required 1. Calculate the following variances 2.00 4.00 0.60 7.40 14.00 6.00 20.00 Material price variance Material usage variance Labour rate variance Labour efficiency variance

A company manufactures one product, and the product is sold as soon as it is produced. There Standar cost card $ Direct materials Direct wages Variable overheads Fixed overhead standard cost standard profit standard selling price 0.5 kgs at $4.00 per kg 2 hrs at $2.00 per hr 2 hrs at $0.30 per hr 2 hrs at $3.70 per hr Budgeted output for January was 5,100 units. Actual results for January were as follows: Production of 4,850 units was sold for $95,600. Materials consumed in production amounted to 2,300 kgs at a total cost of $9,800. labour hours paid for amounted to 8,500 hrs at a cost of $16,800. Actual operating hrs amounted to 8000. (to be used when calculating variable overhead). Variable overheads amounted to $2,600 Fixed Overheads amounted to $42,300. Required 1. Calculate the following variances 2.00 4.00 0.60 7.40 14.00 6.00 20.00 Material price variance Material usage variance Labour rate variance Labour efficiency variance

FINANCIAL ACCOUNTING
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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Question 3 A company manufactures one product, and the product is sold as soon as it is produced. There Standar cost card $ Direct materials Direct wages Variable overheads Fixed overhead standard cost standard profit standard selling price 0.5 kgs at $4.00 per kg 2 hrs at $2.00 per hr 2 hrs at $0.30 per hr 2 hrs at $3.70 per hr 2.00 4.00 0.60 7.40 14.00 6.00 20.00 Budgeted output for January was 5,100 units. Actual results for January were as follows: Production of 4,850 units was sold for $95,600. Materials consumed in production amounted to 2,300 kgs at a total cost of $9,800. labour hours paid for amounted to 8,500 hrs at a cost of $16,800. Actual operating hrs amounted to 8000. (to be used when calculating variable overhead). Variable overheads amounted to $2,600 Fixed Overheads amounted to $42,300. Required 1. Calculate the following variances Material price variance Material usage variance Labour rate variance Labour efficiency variance Selling price variance Sales volume variance
Transcribed Image Text:Question 3 A company manufactures one product, and the product is sold as soon as it is produced. There Standar cost card $ Direct materials Direct wages Variable overheads Fixed overhead standard cost standard profit standard selling price 0.5 kgs at $4.00 per kg 2 hrs at $2.00 per hr 2 hrs at $0.30 per hr 2 hrs at $3.70 per hr 2.00 4.00 0.60 7.40 14.00 6.00 20.00 Budgeted output for January was 5,100 units. Actual results for January were as follows: Production of 4,850 units was sold for $95,600. Materials consumed in production amounted to 2,300 kgs at a total cost of $9,800. labour hours paid for amounted to 8,500 hrs at a cost of $16,800. Actual operating hrs amounted to 8000. (to be used when calculating variable overhead). Variable overheads amounted to $2,600 Fixed Overheads amounted to $42,300. Required 1. Calculate the following variances Material price variance Material usage variance Labour rate variance Labour efficiency variance Selling price variance Sales volume variance
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