QUESTION [25] Manac Ltd manufactures clothing and uses a standard costing system. The following is the standard variable cost for one of their products: Material @ R8.00 per kg Labour @ 1.5 hrs R 20.00 22.50 Variable overheads -varying with hours worked: 1.5 hrs @ R6.00 per hour 9.00 -varying with production 7.00 Budgeted sales - 11 700 units Actual results are as follows: Materials purchased 32 000 kg R262 400 Labour (Rate per hour R16.00) R304 000 Variable overheads -varying with hours worked -varying with production R108 300 R 78 000 R624 000 Sales Additional information: The budgeted selling price is R50.00 per unit. 1. 12 000 units were manufactured and sold. 2. There were no completed units, work in progress or material on hand at the beginning or end of the period. 1. Material price variance Required: (5) Calculate and state whether the following variances are favourable / unfavourable: 1. Material quantity variance 2. Labour rate variance 3. Labour efficiency variance 4. Selling price variance (5) (5) (5) (5)
QUESTION [25] Manac Ltd manufactures clothing and uses a standard costing system. The following is the standard variable cost for one of their products: Material @ R8.00 per kg Labour @ 1.5 hrs R 20.00 22.50 Variable overheads -varying with hours worked: 1.5 hrs @ R6.00 per hour 9.00 -varying with production 7.00 Budgeted sales - 11 700 units Actual results are as follows: Materials purchased 32 000 kg R262 400 Labour (Rate per hour R16.00) R304 000 Variable overheads -varying with hours worked -varying with production R108 300 R 78 000 R624 000 Sales Additional information: The budgeted selling price is R50.00 per unit. 1. 12 000 units were manufactured and sold. 2. There were no completed units, work in progress or material on hand at the beginning or end of the period. 1. Material price variance Required: (5) Calculate and state whether the following variances are favourable / unfavourable: 1. Material quantity variance 2. Labour rate variance 3. Labour efficiency variance 4. Selling price variance (5) (5) (5) (5)
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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![QUESTION [25]
Manac Ltd manufactures clothing and uses a standard costing system.
The following is the standard variable cost for one of their products:
Material @ R8.00 per kg
Labour @ 1.5 hrs
R
20.00
22.50
Variable overheads
-varying with hours worked: 1.5 hrs @ R6.00 per hour
9.00
-varying with production
7.00
Budgeted sales - 11 700 units
Actual results are as follows:
Materials purchased 32 000 kg
R262 400
Labour (Rate per hour R16.00)
R304 000
Variable overheads
-varying with hours worked
-varying with production
R108 300
R 78 000
R624 000
Sales
Additional information:
The budgeted selling price is R50.00 per unit.
1. 12 000 units were manufactured and sold.
2. There were no completed units, work in progress or material on hand at the
beginning or end of the period.
1. Material price variance
Required:
(5)
Calculate and state whether the following variances are favourable /
unfavourable:
1. Material quantity variance
2. Labour rate variance
3. Labour efficiency variance
4. Selling price variance
(5)
(5)
(5)
(5)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd369192e-cd90-449f-b685-4db95af03d43%2F166657af-b283-4f16-9244-bc5b240f2cbe%2F0o1xpxk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION [25]
Manac Ltd manufactures clothing and uses a standard costing system.
The following is the standard variable cost for one of their products:
Material @ R8.00 per kg
Labour @ 1.5 hrs
R
20.00
22.50
Variable overheads
-varying with hours worked: 1.5 hrs @ R6.00 per hour
9.00
-varying with production
7.00
Budgeted sales - 11 700 units
Actual results are as follows:
Materials purchased 32 000 kg
R262 400
Labour (Rate per hour R16.00)
R304 000
Variable overheads
-varying with hours worked
-varying with production
R108 300
R 78 000
R624 000
Sales
Additional information:
The budgeted selling price is R50.00 per unit.
1. 12 000 units were manufactured and sold.
2. There were no completed units, work in progress or material on hand at the
beginning or end of the period.
1. Material price variance
Required:
(5)
Calculate and state whether the following variances are favourable /
unfavourable:
1. Material quantity variance
2. Labour rate variance
3. Labour efficiency variance
4. Selling price variance
(5)
(5)
(5)
(5)
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