The standard cost card for a product shows, Material cost 2 kg @ GH¢2.50 each = GH¢5.00 per unit Labour 2 hours @ GH¢10 each = GH¢20 per unit The actual which has emerged from business operations are as follows. Production – 8,000 units, material consumed – 16,500 kg @ GH¢2.40 each = GH¢39,600, Wages paid 18,000 hours @ GH¢8 each = GH¢144, 000 Calculate; - a) Labour Cost Variance b) Labour Rate Variance c) Labour Efficiency Variance
The standard cost card for a product shows, Material cost 2 kg @ GH¢2.50 each = GH¢5.00 per unit Labour 2 hours @ GH¢10 each = GH¢20 per unit The actual which has emerged from business operations are as follows. Production – 8,000 units, material consumed – 16,500 kg @ GH¢2.40 each = GH¢39,600, Wages paid 18,000 hours @ GH¢8 each = GH¢144, 000 Calculate; - a) Labour Cost Variance b) Labour Rate Variance c) Labour Efficiency Variance
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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![The standard cost card for a product shows,
Material cost 2 kg @ GH¢2.50 each = GH¢5.00
per
unit
Labour 2 hours @ GH¢10 each = GH¢20
per
unit
The actual which has emerged from business operations are as follows.
Production – 8,000 units, material consumed – 16,500 kg @ GH¢2.40 each =
GH¢39,600,
Wages paid 18,000 hours @ GH¢8 each = GH¢144, 000
Calculate;
a) Labour Cost Variance
b) Labour Rate Variance
c) Labour Efficiency Variance
d) Material Cost Variance
e) Material Price Variance
f) Material Quantity Variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37a0371a-1158-42f6-aa2c-077d682613b7%2F60f06764-a09d-4afb-a665-916a266b1c3b%2Fhjs9v1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The standard cost card for a product shows,
Material cost 2 kg @ GH¢2.50 each = GH¢5.00
per
unit
Labour 2 hours @ GH¢10 each = GH¢20
per
unit
The actual which has emerged from business operations are as follows.
Production – 8,000 units, material consumed – 16,500 kg @ GH¢2.40 each =
GH¢39,600,
Wages paid 18,000 hours @ GH¢8 each = GH¢144, 000
Calculate;
a) Labour Cost Variance
b) Labour Rate Variance
c) Labour Efficiency Variance
d) Material Cost Variance
e) Material Price Variance
f) Material Quantity Variance
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