QUESTION 2 Black and White Berhad operates a standard costing system and analysis of variances is made every month. The monthly budgeted unit is 1,600 units and the standard production cost for a unit of product is as follows: 11.50kg Direct Material Direct Labour Variable Overhead RM 4.00 per kg RM 5.00 per hour 4 hours 4 hours RM 2.00 per hour RM6.50 per hour Fixed Overhead 4 hours Currently the standard selling price of H200 is RM120 per unit. However, in the last meeting it was discussed that the price needs to be revised. The following actual data was recorded for the last monthly accounting period. Units produced and sold 1,670 Revenue RM233,800 Materials purchased 24,000 kg. costing RM 92,400 Materials used 19,850kg Direct Labour 6,590 hours, costs RM 34,268 Actual variable overheads RM 12,920 Actual fixed overheads RM 44,580 Required: Calculate ALL variances and prepare and operating statement for the month ending 31 January 2022.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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QUESTION 2
Black and White Berhad operates a standard costing system and analysis of
variances is made every month. The monthly budgeted unit is 1,600 units and the
standard production cost for a unit of product is as follows:
11.50kg
Direct Material
Direct Labour
Variable Overhead
RM 4.00 per kg
RM 5.00 per hour
4 hours
4 hours
RM 2.00 per hour
RM6.50 per hour
Fixed Overhead
4 hours
Currently the standard selling price of H200 is RM120 per unit. However, in the
last meeting it was discussed that the price needs to be revised.
The following actual data was recorded for the last monthly accounting period.
Units produced and sold
1,670
Revenue
RM233,800
Materials purchased
24,000 kg. costing RM 92,400
Materials used
19,850kg
Direct Labour
6,590 hours, costs RM 34,268
Actual variable overheads
RM 12,920
Actual fixed overheads
RM 44,580
Required:
Calculate ALL variances and prepare and operating statement for the month
ending 31 January 2022.
Transcribed Image Text:QUESTION 2 Black and White Berhad operates a standard costing system and analysis of variances is made every month. The monthly budgeted unit is 1,600 units and the standard production cost for a unit of product is as follows: 11.50kg Direct Material Direct Labour Variable Overhead RM 4.00 per kg RM 5.00 per hour 4 hours 4 hours RM 2.00 per hour RM6.50 per hour Fixed Overhead 4 hours Currently the standard selling price of H200 is RM120 per unit. However, in the last meeting it was discussed that the price needs to be revised. The following actual data was recorded for the last monthly accounting period. Units produced and sold 1,670 Revenue RM233,800 Materials purchased 24,000 kg. costing RM 92,400 Materials used 19,850kg Direct Labour 6,590 hours, costs RM 34,268 Actual variable overheads RM 12,920 Actual fixed overheads RM 44,580 Required: Calculate ALL variances and prepare and operating statement for the month ending 31 January 2022.
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