A company manufactures a single product, that has astandard cost per as belowDirect materialsDirect LabourFixed overheadsPer unit(15 metres @K6/metre) 90(5 hours @K8/hour)40Variable Overheads (5hours @ K4/hour) 20(5 hours @ K2/hour) 10The standard selling price is K195KThe monthly budget production and sales was 1,300 units.Actual figures for the month of January 2019 are as follows:SalesProductionDirect materialsDirect wagesVariable overheadsFixed overheadsRequired:1,400 units @ K200 each.1,500 Units23,500 metres @ K6.50 per metre7,000 hours @ K7.80 per hourK25,600K14,200Calculate the following variances:(a) Material price(b) Material usage(c) Labour rate(d) Labour efficiency(e) Variable overhead expenditure(f) Variable overhead efficiency(g) Fixed overhead volume(h) Fixed overhead expenditure(i) Sales Price(j) Sales Volume

Standard Contribution Margin per Unit=Standard Selling Price−Total Standard Cost per…

Answered: A company manufactures a single…

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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