General accounting 10.5 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 kgLabour @ 1.5 hrsVariable overheads-varying with hours worked: 1.5 hrs @ R6.00 per hour-varying with productionBudgeted sales - 11700 unitsActual results are as follows:Materials purchased 32 000 kgR262 400Labour (Rate per hour R16.00)R304 000R20.0022.509.007.00Variable overheads-varying with hours workedvarying with productionSalesAdditional information:The budgeted selling price is R50.00 per unit.1. 12 000 units were manufactured and sold.R108 300R 78 000R624 0002. There were no completed units, work in progress or material on hand at thebeginning or end of the period.1. Material price varianceRequired:(5)Calculate and state whether the following variances are favourableunfavourable:1. Material quantity variance2. Labour rate variance(5)(5)3. Labour efficiency variance(5)(5)4. Selling price variance

Step 1:Computation of the material variances: Standard quantity for actual production (SQ): Standard…

Answered: QUESTION [25] Manac Ltd manufactures…

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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