Question 6 Happy Cupboards Ltd uses two kinds of material to produce its bathroom cupboards; hardwood and plywood. The standard information for one unit of the material is as follows: Selling price per unit $24,900 Budgeted sales 27,500 Cost price per unit Actual sales $17,800 25,000 The standard information relating to each unit of cupboard are as follows: Hardwood Plywood 30 sq. ft at $5 per sq. ft $150 70 sq. ft at $6 per sq. ft $420 $570 In a particular period, 25000 cupboards were produced, using 800,000 sq. ft of hardwood and 1,600,000 sq. ft. of plywood. Required: (a) Calculate the traditional sales volume variance. (b) Compute the material usage, mix and yield variances.

Question 6 Happy Cupboards Ltd uses two kinds of material to produce its bathroom cupboards; hardwood and plywood. The standard information for one unit of the material is as follows: Selling price per unit $24,900 Budgeted sales 27,500 Cost price per unit Actual sales $17,800 25,000 The standard information relating to each unit of cupboard are as follows: Hardwood Plywood 30 sq. ft at $5 per sq. ft $150 70 sq. ft at $6 per sq. ft $420 $570 In a particular period, 25000 cupboards were produced, using 800,000 sq. ft of hardwood and 1,600,000 sq. ft. of plywood. Required: (a) Calculate the traditional sales volume variance. (b) Compute the material usage, mix and yield variances.

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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