RU Limited operates a system of standard costing in respect of one its products which is manufactured within a single cost centre. The standard price of material is N$20 per litre. The standard wage rate is N$ 12 per hour and 5 hours are allowed to produce on unit Fixed production overhead is absorbed at the rate of 100% of wages cost. During the month of September 2020 the following took place: N$ Actual price (paid for materials purchased) 19.50 per litre Total direct wages cost 156 000 Fixed production overhead 158 000 Variances N$ Type Favour (F) Unfavourable (U) Direct material price 80 000 Direct material usage 5 000 Direct labour rate 5 760 Direct labour efficiency 2 760 Fixed production overhead expenditure 8 000 REQUIRED TO CALCULATE: a) Budgeted output in units & raw materials purchased in litres? b) What is the standard quantity allowed for production? c) Actual units produced?
Question 2
RU Limited operates a system of
The standard price of material is N$20 per litre. The standard wage rate is N$ 12 per hour and 5 hours are allowed to produce on unit Fixed production
During the month of September 2020 the following took place:
N$
Actual price (paid for materials purchased) 19.50 per litre
Total direct wages cost 156 000
Fixed production overhead 158 000
Variances
|
|
|
N$ |
|
Type |
Favour (F) |
Unfavourable (U) |
|
Direct material price |
80 000 |
|
|
Direct material usage |
|
5 000 |
|
Direct labour rate |
|
5 760 |
|
Direct labour efficiency |
2 760 |
|
|
Fixed production overhead expenditure |
|
8 000 |
REQUIRED TO CALCULATE:
|
a) Budgeted output in units & raw materials purchased in litres? |
|
b) What is the standard quantity allowed for production? |
|
c) Actual units produced? |
|
d) Actual hours worked? |
|
e) Actual Wage rate per hour? |
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