(a) The following details have been extracted from the standard cost card of Product X which is manufactured by the XYZ chemical company using an absorption costing system: (i) Direct materials (2kg at £4.20) Direct labour (1 hour) Variable overhead (1 hour) Fixed overhead (1 hour) The fixed overhead charged to each unit of the product is based on a monthly production of 2,000 units. (ii) During October 20X3, the actual production amounted to 2,150 units an costs incurred were as follows: (iii) Direct materials (4,330 kg) Direct labour (2,200 hours) Variable overhead (2,200 hours) Fixed overhead (2,200 hours) £ 8.40 7.60 3.90 5.10 25.00 What was the material price variance? £ 18,100 14,980 8,160 9,950 What was the material usage variance? What was the direct labour rate variance?
(a) The following details have been extracted from the standard cost card of Product X which is manufactured by the XYZ chemical company using an absorption costing system: (i) Direct materials (2kg at £4.20) Direct labour (1 hour) Variable overhead (1 hour) Fixed overhead (1 hour) The fixed overhead charged to each unit of the product is based on a monthly production of 2,000 units. (ii) During October 20X3, the actual production amounted to 2,150 units an costs incurred were as follows: (iii) Direct materials (4,330 kg) Direct labour (2,200 hours) Variable overhead (2,200 hours) Fixed overhead (2,200 hours) £ 8.40 7.60 3.90 5.10 25.00 What was the material price variance? £ 18,100 14,980 8,160 9,950 What was the material usage variance? What was the direct labour rate variance?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...
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