PART B: DIRECT MATERIALS AND DIRECT LABOR VARIANCES At the beginning of June, Faiz Mainan Sdn. Bhd. budgeted 5,000 toys action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials RM50,000 Direct labor RM36,000 Total RM86,000 The standard materials price is RM4.00 per pound. The standard direct labor rate is RM18.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials RM49,600 Actual direct labor RM34,020 Total RM83,620 There were no direct materials price or direct labor rate variance for June. In addition, assume no charges in the direct materials inventory balances in June. Faiz Mainan Sdn. Bhd. actually produced 4,850 units of toys action figures during June. REQUIRED: (a) Determine the direct materials price variance. (b) Determine the direct labor rate variance.

PART B: DIRECT MATERIALS AND DIRECT LABOR VARIANCES At the beginning of June, Faiz Mainan Sdn. Bhd. budgeted 5,000 toys action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials RM50,000 Direct labor RM36,000 Total RM86,000 The standard materials price is RM4.00 per pound. The standard direct labor rate is RM18.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials RM49,600 Actual direct labor RM34,020 Total RM83,620 There were no direct materials price or direct labor rate variance for June. In addition, assume no charges in the direct materials inventory balances in June. Faiz Mainan Sdn. Bhd. actually produced 4,850 units of toys action figures during June. REQUIRED: (a) Determine the direct materials price variance. (b) Determine the direct labor rate variance.

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Description: PART B: DIRECT MATERIALS AND DIRECT LABOR VARIANCESAt the beginning of June, Faiz Mainan Sdn. Bhd. budgeted 5,000 toys action figures to bemanufactured in June at standard direct materials and direct labor costs as follows:Direct materialsRM50,000Di

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EB: Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The...

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