Gr8bean manufactures various coffee flavours which are sold in jars. The company has set the following standard costs to manufacture one jar of its premium flavour: Quantity / Hours Price/Rate Standard Cost 750 grams ? ? R50 per hour ? R4 Details Direct materials Direct Labour Variable overheads TOTAL STANDARD COST OF ONE BOX The following cost information relates to August for the production of the 4 500 boxes: Details Direct materials Direct Labour During the month of August, 4 500 boxes were manufactured, and 5 000 kg of direct materials were purchased whilst 3 800 kg were issued to production. Standard cost for August Actual cost for August REQUIRED: R67 500 R80 000 ? R135 000 ? ? Q.2.2 Calculate the standard quantity (hours) used to make one box. ? R40 Variable overheads R22 500 R40 000

Gr8bean manufactures various coffee flavours which are sold in jars. The company has set the following standard costs to manufacture one jar of its premium flavour: Quantity / Hours Price/Rate Standard Cost 750 grams ? ? R50 per hour ? R4 Details Direct materials Direct Labour Variable overheads TOTAL STANDARD COST OF ONE BOX The following cost information relates to August for the production of the 4 500 boxes: Details Direct materials Direct Labour During the month of August, 4 500 boxes were manufactured, and 5 000 kg of direct materials were purchased whilst 3 800 kg were issued to production. Standard cost for August Actual cost for August REQUIRED: R67 500 R80 000 ? R135 000 ? ? Q.2.2 Calculate the standard quantity (hours) used to make one box. ? R40 Variable overheads R22 500 R40 000

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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