(Material and Labour Variances). Following have set to manufacture a product by a company : been Direct Material: $ 2 units of 'A' @ $ 4 per unit 8.00 3 units of 'B' @ $ 3 per unit 9.00 15 units of C@ $ 1 per unit 15.00 Direct Labour : 3 labour hours @ $ 8 per labour hour 24.00 Total Standard Prime Cost 56.00 The company had manufactured and sold 6,000 units of the product material costs incurred were as follows : 12,500 units of 'A' $ @ 4.40 per unit ; 18,000 units of 'B'@ $ 2.80 per unit ; 88,500 units of "C' @ $1.20per unit. The company worked for 17,500 direct labour hours during the year. For 2,500 hours, the company paid @ $ 12 per labour hour, while for the remaining labour hours, it paid at the standard rate. You are required to calculate ; (i) Material price, Usage, Mixture and Yield variances; (ii) Labour rate and Efficiency variances.

(Material and Labour Variances). Following have set to manufacture a product by a company : been Direct Material: $ 2 units of 'A' @ $ 4 per unit 8.00 3 units of 'B' @ $ 3 per unit 9.00 15 units of C@ $ 1 per unit 15.00 Direct Labour : 3 labour hours @ $ 8 per labour hour 24.00 Total Standard Prime Cost 56.00 The company had manufactured and sold 6,000 units of the product material costs incurred were as follows : 12,500 units of 'A' $ @ 4.40 per unit ; 18,000 units of 'B'@ $ 2.80 per unit ; 88,500 units of "C' @ $1.20per unit. The company worked for 17,500 direct labour hours during the year. For 2,500 hours, the company paid @ $ 12 per labour hour, while for the remaining labour hours, it paid at the standard rate. You are required to calculate ; (i) Material price, Usage, Mixture and Yield variances; (ii) Labour rate and Efficiency variances.

Name: (Material and Labour Variances). Following have set to manufacture a
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Description: (Material and Labour Variances). Following have set to manufacture a product by a company :been Direct Material:$2 units of 'A' @ $ 4 per unit8.003 units of 'B' @ $ 3 per unit9.0015 units of C@ $ 1 per unit15.00Direct Labour :3 labour hours @ $ 8 pe

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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