MacDowell Company manufactures 100 kg bags of fertilizer that have the following unit standard costs for...

 

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MacDowell Company manufactures 100 kg bags of fertilizer that have the following unit standard costs for direct materials and direct labour: Direct materials (100 kg @ S1.00 per kilogram $100.00 Direct labour (0.5 hours at $24 per hour) Total standard direct cost per 100 kg bag 12.00 S112.00 The following activities were recorded for October: HI.000 bags were manufactured. 102,500 kg of materials costing $101,000 were purchased and used $12,000 was paid for 475 hours of direct labour. Required: A Compute the direet materials variances. (10 marks) B.Compute the direct labour variances. (10 marks) Give possible reasons for the occurrence of cach of the preceding variances. (10 marks MacDowell Company manufactures 100 kg bags of fertilizer that have the following unit standard costs for direct materials and direct labour: Direct materials (100 kg @ S1.00 per kilogram $100.00 Direct labour (0.5 hours at $24 per hour) Total standard direct cost per 100 kg bag 12.00 S112.00 The following activities were recorded for October: HI.000 bags were manufactured. 102,500 kg of materials costing $101,000 were purchased and used $12,000 was paid for 475 hours of direct labour. Required: A Compute the direet materials variances. (10 marks) B.Compute the direct labour variances. (10 marks) Give possible reasons for the occurrence of cach of the preceding variances. (10 marks

Answer rating: 100% (QA)

ANSWER 1 Compute the direct materials variances Material price variance Actual Quantity purchased St... View the full answer