A company manufactures a single product, that has a standard cost per as below Direct materials Direct Labour Fixed overheads Per unit (15 metres @K6/metre) 90 (5 hours @K8/hour) 40 Variable Overheads (5hours @ K4/hour) 20 (5 hours @ K2/hour) 10 The standard selling price is K195 K The monthly budget production and sales was 1,300 units. Actual figures for the month of January 2019 are as follows: Sales Production Direct materials Direct wages Variable overheads Fixed overheads Required: 1,400 units @ K200 each. 1,500 Units 23,500 metres @ K6.50 per metre 7,000 hours @ K7.80 per hour K25,600 K14,200 Calculate 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

A company manufactures a single product, that has a standard cost per as below Direct materials Direct Labour Fixed overheads Per unit (15 metres @K6/metre) 90 (5 hours @K8/hour) 40 Variable Overheads (5hours @ K4/hour) 20 (5 hours @ K2/hour) 10 The standard selling price is K195 K The monthly budget production and sales was 1,300 units. Actual figures for the month of January 2019 are as follows: Sales Production Direct materials Direct wages Variable overheads Fixed overheads Required: 1,400 units @ K200 each. 1,500 Units 23,500 metres @ K6.50 per metre 7,000 hours @ K7.80 per hour K25,600 K14,200 Calculate 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

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...

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