Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 Variable overheads -varying with hours worked: 1.5 hrs @ R6.00 per hour -varying with production Budgeted sales - 11700 units Actual results are as follows: Materials purchased 32 000 kg R262 400 Labour (Rate per hour R16.00) R304 000 R 20.00 22.50 9.00 7.00 Variable overheads -varying with hours worked varying with production Sales Additional information: The budgeted selling price is R50.00 per unit. 1. 12 000 units were manufactured and sold. R108 300 R 78 000 R624 000 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 (5) (5) 3. Labour efficiency variance (5) (5) 4. Selling price variance

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 Variable overheads -varying with hours worked: 1.5 hrs @ R6.00 per hour -varying with production Budgeted sales - 11700 units Actual results are as follows: Materials purchased 32 000 kg R262 400 Labour (Rate per hour R16.00) R304 000 R 20.00 22.50 9.00 7.00 Variable overheads -varying with hours worked varying with production Sales Additional information: The budgeted selling price is R50.00 per unit. 1. 12 000 units were manufactured and sold. R108 300 R 78 000 R624 000 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 (5) (5) 3. Labour efficiency variance (5) (5) 4. Selling price variance

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
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...
See similar textbooks
icon
Related questions
Question

Manac

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 Variable overheads -varying with hours worked: 1.5 hrs @ R6.00 per hour -varying with production Budgeted sales - 11700 units Actual results are as follows: Materials purchased 32 000 kg R262 400 Labour (Rate per hour R16.00) R304 000 R 20.00 22.50 9.00 7.00 Variable overheads -varying with hours worked varying with production Sales Additional information: The budgeted selling price is R50.00 per unit. 1. 12 000 units were manufactured and sold. R108 300 R 78 000 R624 000 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 (5) (5) 3. Labour efficiency variance (5) (5) 4. Selling price variance
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 Variable overheads -varying with hours worked: 1.5 hrs @ R6.00 per hour -varying with production Budgeted sales - 11700 units Actual results are as follows: Materials purchased 32 000 kg R262 400 Labour (Rate per hour R16.00) R304 000 R 20.00 22.50 9.00 7.00 Variable overheads -varying with hours worked varying with production Sales Additional information: The budgeted selling price is R50.00 per unit. 1. 12 000 units were manufactured and sold. R108 300 R 78 000 R624 000 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 (5) (5) 3. Labour efficiency variance (5) (5) 4. Selling price variance
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS