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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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