You have collected the standard cost card for one unit of the ‘Zeus’ which was in operation in the just ended period, details of which follow below: K Materials 7kg at K35.00 245.00 Labour 20 hours at K12.00 240.00 Variable overheads 20 hours at K8.00 160.00 Fixed overheads 20 hours at K15.00 300.00 945.00 Selling price 1,500.00 Profit 555.00 The budget was for 9,000 units of product ‘Zeus’ to be produced and sold. Actual results for the period just ended were: K Sales 8,900 units 12,406,600 Production 8,900 units Materials- purchased and used 62,450 Kg 2,183,000 Labour- paid and worked 177,450 hours 2,246,000 Variable overheads 1,435,000 Fixed overheads 2,650,000 Required: Calculate the overhead expenditure variance
You have collected the
K
Materials 7kg at K35.00 245.00
Labour 20 hours at K12.00 240.00
Variable
Fixed overheads 20 hours at K15.00 300.00
945.00
Selling price 1,500.00
Profit 555.00
The budget was for 9,000 units of product ‘Zeus’ to be produced and sold.
Actual results for the period just ended were:
K
Sales 8,900 units 12,406,600
Production 8,900 units
Materials- purchased and used 62,450 Kg 2,183,000
Labour- paid and worked 177,450 hours 2,246,000
Variable overheads 1,435,000
Fixed overheads 2,650,000
Required:
Calculate the overhead expenditure variance
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