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ham Bên ope ade every month The standard cost card is as follows for a unit c RM Direct materials Direct labour Variable overheads Fixed overhead Standard cost 0.5kg at RM 4/kg 2 hours at RM 2/hour 2 hours at RM 0.30/hour 2 hours at RM 3.70/hour Standard profit Standard selling price Fudgeted output for the month of January 2021 was 5,100 units. vere as follows: Production of 4,850 units were sold for RM95,600 Materials consumed in production amounted to 2,300 kgs at a tota RM9,800 Labour hours paid amounted to 8,500 hours at a cost of RM16,80C Actual hours worked amounted to 8,000 hours Variable overheads amounted to RM2,600 Fixed overheads amounted to RM42,300 Required: Calculate ALL variances and prenare and onerating ctator

ham Bên ope ade every month The standard cost card is as follows for a unit c RM Direct materials Direct labour Variable overheads Fixed overhead Standard cost 0.5kg at RM 4/kg 2 hours at RM 2/hour 2 hours at RM 0.30/hour 2 hours at RM 3.70/hour Standard profit Standard selling price Fudgeted output for the month of January 2021 was 5,100 units. vere as follows: Production of 4,850 units were sold for RM95,600 Materials consumed in production amounted to 2,300 kgs at a tota RM9,800 Labour hours paid amounted to 8,500 hours at a cost of RM16,80C Actual hours worked amounted to 8,000 hours Variable overheads amounted to RM2,600 Fixed overheads amounted to RM42,300 Required: Calculate ALL variances and prenare and onerating ctator

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...
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Wham Berhad operates a standard costing system and analysis of variances is made every month The standard cost card is as follows for a unit of product: RM 2.00 0.5kg at RM 4/kg 2 hours at RM 2/hour Direct materials 4.00 Direct labour Variable overheads 2 hours at RM 0.30/hour 0.60 7.40 14.00 Fixed overhead 2 hours at RM 3.70/hour Standard cost Standard profit Standard selling price 6.00 20.00 Budgeted output for the month of January 2021 was 5,100 units. Actual results were as follows: Production of 4,850 units were sold for RM95,600 Materials consumed in production amounted to 2,300 kgs at a total cost of RM9.800 Labour hours paid amounted to 8,500 hours at a cost of RM16,800 Actual hours worked amounted to 8,000 hours Variable overheads amounted to RM2,600 Fixed overheads amounted to RM42,300 I Required: a. Calculate ALL variances and prepare and operating statement for the month ending 31 January 2021. b. Critically evaluate the importance of setting standards in management accounting.
Transcribed Image Text:Wham Berhad operates a standard costing system and analysis of variances is made every month The standard cost card is as follows for a unit of product: RM 2.00 0.5kg at RM 4/kg 2 hours at RM 2/hour Direct materials 4.00 Direct labour Variable overheads 2 hours at RM 0.30/hour 0.60 7.40 14.00 Fixed overhead 2 hours at RM 3.70/hour Standard cost Standard profit Standard selling price 6.00 20.00 Budgeted output for the month of January 2021 was 5,100 units. Actual results were as follows: Production of 4,850 units were sold for RM95,600 Materials consumed in production amounted to 2,300 kgs at a total cost of RM9.800 Labour hours paid amounted to 8,500 hours at a cost of RM16,800 Actual hours worked amounted to 8,000 hours Variable overheads amounted to RM2,600 Fixed overheads amounted to RM42,300 I Required: a. Calculate ALL variances and prepare and operating statement for the month ending 31 January 2021. b. Critically evaluate the importance of setting standards in management accounting.
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