Calculate the following variances for November 2021 and indicate whether each of itis favorable (F) or adverse (A). 5. Variable overhead expenditure.6. Variable overhead efficiency.7. Fixed overhead expenditure.8. Fixed overhead efficiency.Please provide each of them calculations Jelita Beauty Sdn Bhd produce face serum. The company produce their product intheir small-scale production plant. The following information relates with standardrequirement for each unit of the serum bottles.RM5.461.3 kg @ RM 4.20 per kg2 hours @ RM 4.00 per hour2 hours @ RM 3.00 per hourDirect materialDirect labour8.00Variable overhead6.00The production of the product had a budgeted fixed overhead of RM657,600 perannum. Overhead was absorb based on direct labour hours with monthly budgetedproduction unit of 4,000 units.Actual data for the production in November 2021 was recorded as follows:(i)The direct materials recorded and charged to production are 5,550kg at RM3.50 per kg.(ii)Direct labour involved in the production was paid RM3.25 per hour. A total of6,450 hours was recorded for the job.(iii)Variable overhead incurred was RM 25,430 and fixed overhead is RM 49,500.(iv)Face Serum produced are 4,200 units.Required:

Variable overhead expenditure= (Actual hours * Actual rate per hour)-(Actual hours *Standard rate…

Calculate the following variances for November 2021 and indicate whether each of it is favorable (F) or adverse (A). 5. Variable overhead expenditure. 6. Variable overhead efficiency. 7. Fixed overhead expenditure. 8. Fixed overhead efficiency.

Calculate the following variances for November 2021 and indicate whether each of it is favorable (F) or adverse (A). 5. Variable overhead expenditure. 6. Variable overhead efficiency. 7. Fixed overhead expenditure. 8. Fixed overhead efficiency.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

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Calculate the following variances for November 2021 and indicate whether each of it
is favorable (F) or adverse (A).

5. Variable overhead expenditure.
6. Variable overhead efficiency.
7. Fixed overhead expenditure.
8. Fixed overhead efficiency.

Please provide each of them calculations

Jelita Beauty Sdn Bhd produce face serum. The company produce their product in
their small-scale production plant. The following information relates with standard
requirement for each unit of the serum bottles.
RM
5.46
1.3 kg @ RM 4.20 per kg
2 hours @ RM 4.00 per hour
2 hours @ RM 3.00 per hour
Direct material
Direct labour
8.00
Variable overhead
6.00
The production of the product had a budgeted fixed overhead of RM657,600 per
annum. Overhead was absorb based on direct labour hours with monthly budgeted
production unit of 4,000 units.
Actual data for the production in November 2021 was recorded as follows:
(i)
The direct materials recorded and charged to production are 5,550kg at RM
3.50 per kg.
(ii)
Direct labour involved in the production was paid RM3.25 per hour. A total of
6,450 hours was recorded for the job.
(iii)
Variable overhead incurred was RM 25,430 and fixed overhead is RM 49,500.
(iv)
Face Serum produced are 4,200 units.
Required:

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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