Calculate the material price and usage variance, and the material costvariance for the concrete work. You are working as the project manager in a construction company and iscurrently working on the construction of a building. The company had justcompleted the construction of the first floor of the building. The preliminaryestimate done by the quantity surveyor is as shown in Table 2 below.Table 4: Preliminary estimate by Quantity Surveyor6 days130 m3RM23,000DurationConcrete QuantityConcrete CostWorkers QuantityWorkers CostRM1000The project director had queried the concrete work for the first floor and hadasked you to verify the material and cost variances for the construction of thefirst floor of the building. Based on the data obtained from the site supervisor,you have found out that the duration of the concreting for the first floor is 5 days.You have also found that the quantity of concrete used for the first floor is150m3, with the cost of RM25,000. On top of that, you have found that only 4sub-workers were used during the construction, with the cost of RM850.Prepare your answer to the project director by answering the followingquestions.

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Description: Calculate the material price and usage variance, and the material costvariance for the concrete work. You are working as the project manager in a construction company and iscurrently working on the construction of a building. The company had justcomp

Variance analysis is one of the important technique of management accounting, under which actual…

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Calculate the material price and usage variance, and the material cost variance for the concrete work.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 3CE: In 20x2, Choctaw Company implements a new process affecting labor and materials. The following...

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