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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate the material price and usage variance, and the material cost variance for the concrete work.
You are working as the project manager in a construction company and is currently working on the construction of a building. The company had just completed the construction of the first floor of the building. The preliminary estimate done by the quantity surveyor is as shown in Table 2 below. Table 4: Preliminary estimate by Quantity Surveyor 6 days 130 m3 RM23,000 Duration Concrete Quantity Concrete Cost Workers Quantity Workers Cost RM1000 The project director had queried the concrete work for the first floor and had asked you to verify the material and cost variances for the construction of the first 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 is 150m3, with the cost of RM25,000. On top of that, you have found that only 4 sub-workers were used during the construction, with the cost of RM850. Prepare your answer to the project director by answering the following questions.
Transcribed Image Text:You are working as the project manager in a construction company and is currently working on the construction of a building. The company had just completed the construction of the first floor of the building. The preliminary estimate done by the quantity surveyor is as shown in Table 2 below. Table 4: Preliminary estimate by Quantity Surveyor 6 days 130 m3 RM23,000 Duration Concrete Quantity Concrete Cost Workers Quantity Workers Cost RM1000 The project director had queried the concrete work for the first floor and had asked you to verify the material and cost variances for the construction of the first 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 is 150m3, with the cost of RM25,000. On top of that, you have found that only 4 sub-workers were used during the construction, with the cost of RM850. Prepare your answer to the project director by answering the following questions.
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