STANDARD COSTINGA company produces a product which has a standard variable production cost of $8 per unit made up as follows:$ per unitDirect material $4.60 (2kg X $2.30 per kg)Direct labour $2.10 (0.7 hours X $3.00 per our)Variable overhead $1.30Fixed manufacturing costs are treated as period costs. The following information is availablefor the period just ended.Variable manufacturing cost of sales (at standard cost) $263,520Opening stock of finished goods (at standard cost) $120,800Closing stock of finished goods (at standard cost) $146,080Direct material rice variance $2,571 unfavourableRaw materials used in manufacture (at actual cost) $170,310Direct labour rate variance $4,760 unfavourableDirect labour efficiency variance $3,240 favourableRequired:(a) Determine for the period just ended(i) the number of units produced(ii) the raw material usage variance(iii) the total actual direct labour cost, and(iv) the actual cost per kg of raw material used.
STANDARD COSTING
A company produces a product which has a standard variable production cost of $8 per unit made up as follows:
$ per unit
Direct material $4.60 (2kg X $2.30 per kg)
Direct labour $2.10 (0.7 hours X $3.00 per our)
Variable overhead $1.30
Fixed
The following information is availablefor the period just ended.
Variable manufacturing cost of sales (at
Opening stock of finished goods (at standard cost) $120,800
Closing stock of finished goods (at standard cost) $146,080
Direct material rice variance $2,571 unfavourable
Raw materials used in manufacture (at actual cost) $170,310
Direct labour rate variance $4,760 unfavourable
Direct labour efficiency variance $3,240 favourable
Required:(a) Determine for the period just ended
(i) the number of units produced
(ii) the raw material usage variance
(iii) the total actual direct labour cost, and
(iv) the actual cost per kg of raw material used.
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