A company supplies a savoury sauce to the hotel industry. The standard cost for one unit for June2016 was as follows:5kg @ $4 per kg4 hours @ $6 per hourOverheads (based upon an overhead absorption rate of $4 per labour-hour) 12Direct materials$2024Direct labour60Budgeted output in June was 1 200 units. The actual results were as follows:1 300 units were madeii. Direct materials used were 6 600 kgs at a total cost of $25 080iii. Direct labour was 5 330 hours at a cost of $32 513iv. Actual fixed overheads were $22 000i.Required:Calculate the following:i. Material price varianceii. Material usage variance)iii. Labour rate varianceiv. Labour efficiency variance

Name: A company supplies a savoury sauce to the hotel industry. The standar
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Description: A company supplies a savoury sauce to the hotel industry. The standard cost for one unit for June2016 was as follows:5kg @ $4 per kg4 hours @ $6 per hourOverheads (based upon an overhead absorption rate of $4 per labour-hour) 12Direct materials$2024

The calculation of actual per unit costs for material and labor has been calculated as follows:…

Answered: Required: Calculate the following: i.…

Business

Accounting

Required: Calculate the following: i. Material price variance ii. Material usage variance) iii. Labour rate variance iv. Labour efficiency variance

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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