Roti Boom Bhd. (RBB) is a company in Kuala Lumpur that produces and sells a variety...

 

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Roti Boom Bhd. (RBB) is a company in Kuala Lumpur that produces and sells a variety of dough breads to restaurants, pizzerias, etc. in packs (the product). The accounts department uses marginal costing principle and produces a monthly budget based on the production and sale of 1,800 units of the products as follows: Selling price Less: Labour costs Materials costs Fixed overheads Profit Costs: Labour costs Material costs Fixed Overheads Required: (8 hours x RM12) (5.2 Lon RM20kg) (iv) MC 22.500 hours. 10.760 kg The actual data related to the production and sales of 2,000 units for the month have been recorded as folos 104 315.000 269.000 30 RM per unit 320 RM 700.000 230 SHD 634.000 66.0KHO Calculate the following variances for the month: Material price, usage and cost variances. Labour rate, efficiency and cost variances. Fixed overhead expenditure variances. Sales price and volume variances. Explain ANY ONE (1) possible cause for each of the variances calculated in part (a) above... (7 marks) Explain ANY ONE (1) importance of a variance report for Roti Boom Bhd. (5 marks) (4 marks) Roti Boom Bhd. (RBB) is a company in Kuala Lumpur that produces and sells a variety of dough breads to restaurants, pizzerias, etc. in packs (the product). The accounts department uses marginal costing principle and produces a monthly budget based on the production and sale of 1,800 units of the products as follows: Selling price Less: Labour costs Materials costs Fixed overheads Profit Costs: Labour costs Material costs Fixed Overheads Required: (8 hours x RM12) (5.2 Lon RM20kg) (iv) MC 22.500 hours. 10.760 kg The actual data related to the production and sales of 2,000 units for the month have been recorded as folos 104 315.000 269.000 30 RM per unit 320 RM 700.000 230 SHD 634.000 66.0KHO Calculate the following variances for the month: Material price, usage and cost variances. Labour rate, efficiency and cost variances. Fixed overhead expenditure variances. Sales price and volume variances. Explain ANY ONE (1) possible cause for each of the variances calculated in part (a) above... (7 marks) Explain ANY ONE (1) importance of a variance report for Roti Boom Bhd. (5 marks) (4 marks)

Answer rating: 100% (QA)

Material cost varianceSQ for actual producitonSPAQAP SQ for actual production 200052 kg per unit SPR... View the full answer