Calculate the following variance from the information provided below. In each case also state whether the variance is favourable or unfavourable. 1.4.1 Material issue price variance 1.4.2 Material quantity variance INFORMATION Budgeted figures of Butterworth Manufacturers for Product A for April 2023 Expected production 30 000 units Standard material cost for each unit of Product A 12 kg at R20 per kg Actual figures of Butterworth Manufacturers for Product A for April 2023 Production 28 000 units Materials used in production 338 800 kg at a total cost of R7 114 800

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculate the following variance from
the information provided below. In
each case also state whether the
variance is favourable or
unfavourable. 1.4.1 Material issue
price variance 1.4.2 Material quantity
variance INFORMATION Budgeted
figures of Butterworth Manufacturers
for Product A for April 2023 Expected
production 30 000 units Standard
material cost for each unit of Product
A 12 kg at R20 per kg Actual figures
of Butterworth Manufacturers for
Product A for April 2023 Production
28 000 units Materials used in
production 338 800 kg at a total cost
of R7 114 800
Transcribed Image Text:Calculate the following variance from the information provided below. In each case also state whether the variance is favourable or unfavourable. 1.4.1 Material issue price variance 1.4.2 Material quantity variance INFORMATION Budgeted figures of Butterworth Manufacturers for Product A for April 2023 Expected production 30 000 units Standard material cost for each unit of Product A 12 kg at R20 per kg Actual figures of Butterworth Manufacturers for Product A for April 2023 Production 28 000 units Materials used in production 338 800 kg at a total cost of R7 114 800
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