Calculate the material price and usage variance, and the material costvariance for the concrete work. You are working as the project manager in a construction company and iscurrently working on the construction of a building. The company had justcompleted the construction of the first floor of the building. The preliminaryestimate done by the quantity surveyor is as shown in Table 2 below.Table 4: Preliminary estimate by Quantity Surveyor6 days130 m3RM23,000DurationConcrete QuantityConcrete CostWorkers QuantityWorkers CostRM1000The project director had queried the concrete work for the first floor and hadasked you to verify the material and cost variances for the construction of thefirst floor of the building. Based on the data obtained from the site supervisor,you have found out that the duration of the concreting for the first floor is 5 days.You have also found that the quantity of concrete used for the first floor is150m3, with the cost of RM25,000. On top of that, you have found that only 4sub-workers were used during the construction, with the cost of RM850.Prepare your answer to the project director by answering the followingquestions.

Name: Calculate the material price and usage variance, and the material cost
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Calculate the material price and usage variance, and the material costvariance for the concrete work. You are working as the project manager in a construction company and iscurrently working on the construction of a building. The company had justcomp

Variance analysis is one of the important technique of management accounting, under which actual…

Answered: Calculate the material price and usage…

Business

Accounting

Calculate the material price and usage variance, and the material cost variance for the concrete work.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is the cost volume variance?
Compute for variable overhead efficiency variance.
nee In which department would an investigation of the materials price variance most likely begin?
Which of the following statements is true with respect to the materials price variance? Multiple Choice It is computed using the actual quantity of materials purchased. It is computed using the standard quantity of materials purchased. It is computed using the standard quantity of materials used in production. It is computed using the actual quantity of materials used in production.
The following direct materials and direct labor data pertain to the operations of Sunland Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $290 $12.50 per hour per ton per hour $292 per ton Quantities. Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used. 4,200 hours 1,000 tons 4,290 hours 990 tons
help with material quantities variance. thanks
Which of the following is the correct formula for the direct materials quantity variance? O a. (Actual Quantity - Actual Price) - (Standard Quantity Standard Price) O b. (Actual Quantity- Standard Quantity) * Actual Price O c. (Actual Price - Standard Price) × Actual Quantity O d. (Actual Quantity - Standard Quantity) x Standard Price
What will be the equivalent units for materials and cost per unit of materials.
Search about how technique is efficient Engineered estimate of cost to estimate cost.
Briefly describe various variances relating to factory overheads. How material, labor and overhead variances calculated and recorded?
Define product cost variances.
the difference between the actual price and the standard price, multiplied by the actual quantity of materials purchased is the