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Razi Company is a manufacturer of the leather belt based in Kelang, Selangor. The company estimated a total of 400 units of production for the most recent period. The standard costs per unit are given below: Leather Belt Standard cost per unit (RM)

Razi Company is a manufacturer of the leather belt based in Kelang, Selangor. The company estimated a total of 400 units of production for the most recent period. The standard costs per unit are given below: Leather Belt Standard cost per unit (RM)

FINANCIAL ACCOUNTING
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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Question 4

Please assist on sub part d, e, f

 

Razi Company is a manufacturer of the leather belt based in Kelang, Selangor. The company estimated a total of 400 units of production for the most recent period. The standard costs per unit are given below: Standard cost per unit (RM) Leather Belt Direct material (2m at RM1.50 per meter) 3.00 Direct labour (1.5 hours at RM6 per hour) Variable production overhead (1.5 hours at RM3.40) 9.00 5.10 17.10 The budgeted and actual units produced for this period were 400 units. The following is the actual costs incurred per unit. Leather Belt Direct material (2.1m at RM1.60 per meter) Actual cost per unit (RM) 3.36 Direct labour (1.4 hours at RM6.50 per hour) Variable production overhead (1.4hours at RM3.10) 9.10 4.34 16.80
Transcribed Image Text:Razi Company is a manufacturer of the leather belt based in Kelang, Selangor. The company estimated a total of 400 units of production for the most recent period. The standard costs per unit are given below: Standard cost per unit (RM) Leather Belt Direct material (2m at RM1.50 per meter) 3.00 Direct labour (1.5 hours at RM6 per hour) Variable production overhead (1.5 hours at RM3.40) 9.00 5.10 17.10 The budgeted and actual units produced for this period were 400 units. The following is the actual costs incurred per unit. Leather Belt Direct material (2.1m at RM1.60 per meter) Actual cost per unit (RM) 3.36 Direct labour (1.4 hours at RM6.50 per hour) Variable production overhead (1.4hours at RM3.10) 9.10 4.34 16.80
From the foregoing information, compute the following variances and indicate whether they are favorable (F) or unfavorable (U). State why each of the variances occurred. a) Material price variance b) Material usage variance c) Direct labour rate variance d) Direct labour efficiency variance e) Variable overhead spending variance f) Variable overhead efficiency variance
Transcribed Image Text:From the foregoing information, compute the following variances and indicate whether they are favorable (F) or unfavorable (U). State why each of the variances occurred. a) Material price variance b) Material usage variance c) Direct labour rate variance d) Direct labour efficiency variance e) Variable overhead spending variance f) Variable overhead efficiency variance
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