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Alpha Plc manufactures and sells a single product and has a standard costing system in which purchases of materials are recorded at standard cost, direct material costs and direct labour costs are variable and production overheads are fixed and absorbed using direct labour hours. The budgeted and actual results for the month of November 20X6 are as follows: (a) Budgeted Production Units are 200,000 whereas actual production units are 190,000. (b) Budgeted material purchased is 10,000 kgs amounting to $4,500,000 whereas actual material purchased is 9595kgs amounting to $3,838,000. (c) Budgeted direct labours is 20,000 hours amounting to $200,000 whereas actual direct labour hours is 20,000 hours amounting to $240,000. (d) Budgeted Fixed Overheads is $1,250,000 whereas actual fixed overheads is $1,375,000. (e) There is material price variance of $479,750 (favourable) & material usage variance of $42,750 (adverse) Calculate the following information for November: (i) standard rate per hour for labour (ii) standard hours of labour for actual production (iii) the total standard cost for actual production (iv) Budgeted cost for 190,000 units (v) Labour rate variance (vi) Labour efficiency variance (vii) Fixed overhead expenditure variance (viii) Fixed overhead volume variance (ix) Actual cost for 190,000 units

Alpha Plc manufactures and sells a single product and has a standard costing system in which purchases of materials are recorded at standard cost, direct material costs and direct labour costs are variable and production overheads are fixed and absorbed using direct labour hours. The budgeted and actual results for the month of November 20X6 are as follows: (a) Budgeted Production Units are 200,000 whereas actual production units are 190,000. (b) Budgeted material purchased is 10,000 kgs amounting to $4,500,000 whereas actual material purchased is 9595kgs amounting to $3,838,000. (c) Budgeted direct labours is 20,000 hours amounting to $200,000 whereas actual direct labour hours is 20,000 hours amounting to $240,000. (d) Budgeted Fixed Overheads is $1,250,000 whereas actual fixed overheads is $1,375,000. (e) There is material price variance of $479,750 (favourable) & material usage variance of $42,750 (adverse) Calculate the following information for November: (i) standard rate per hour for labour (ii) standard hours of labour for actual production (iii) the total standard cost for actual production (iv) Budgeted cost for 190,000 units (v) Labour rate variance (vi) Labour efficiency variance (vii) Fixed overhead expenditure variance (viii) Fixed overhead volume variance (ix) Actual cost for 190,000 units

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 20P: Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The...
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Alpha Plc manufactures and sells a single product and has a standard costing system in which purchases of materials are recorded at standard cost, direct material costs and direct labour costs are variable and production overheads are fixed and absorbed using direct labour hours. The budgeted and actual results for the month of November 20X6 are as follows: (a) Budgeted Production Units are 200,000 whereas actual production units are 190,000. (b) Budgeted material purchased is 10,000 kgs amounting to $4,500,000 whereas actual material purchased is 9595kgs amounting to $3,838,000. (c) Budgeted direct labours is 20,000 hours amounting to $200,000 whereas actual direct labour hours is 20,000 hours amounting to $240,000. (d) Budgeted Fixed Overheads is $1,250,000 whereas actual fixed overheads is $1,375,000. (e) There is material price variance of $479,750 (favourable) & material usage variance of $42,750 (adverse) Calculate the following information for November: (i) standard rate per hour for labour (ii) standard hours of labour for actual production (iii) the total standard cost for actual production (iv) Budgeted cost for 190,000 units (v) Labour rate variance (vi) Labour efficiency variance (vii) Fixed overhead expenditure variance (viii) Fixed overhead volume variance (ix) Actual cost for 190,000 units
Transcribed Image Text:Alpha Plc manufactures and sells a single product and has a standard costing system in which purchases of materials are recorded at standard cost, direct material costs and direct labour costs are variable and production overheads are fixed and absorbed using direct labour hours. The budgeted and actual results for the month of November 20X6 are as follows: (a) Budgeted Production Units are 200,000 whereas actual production units are 190,000. (b) Budgeted material purchased is 10,000 kgs amounting to $4,500,000 whereas actual material purchased is 9595kgs amounting to $3,838,000. (c) Budgeted direct labours is 20,000 hours amounting to $200,000 whereas actual direct labour hours is 20,000 hours amounting to $240,000. (d) Budgeted Fixed Overheads is $1,250,000 whereas actual fixed overheads is $1,375,000. (e) There is material price variance of $479,750 (favourable) & material usage variance of $42,750 (adverse) Calculate the following information for November: (i) standard rate per hour for labour (ii) standard hours of labour for actual production (iii) the total standard cost for actual production (iv) Budgeted cost for 190,000 units (v) Labour rate variance (vi) Labour efficiency variance (vii) Fixed overhead expenditure variance (viii) Fixed overhead volume variance (ix) Actual cost for 190,000 units
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