The Red man Company manufactures a product whose standard unit cost is as follows: 000 Direct...
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The Red man Company manufactures a product whose standard unit cost is as follows: 000 Direct materials: 24 kilograms @ Rs. 3.00.. Rs. Direct Labour: 6 hours @ Rs. 8.00...... Factory Overhead: 50% of Prime Cost (72 +48) x 50%... Total Standard Unit Cost........ Actual Data for November, b) 72.00 48.00 60.00 180.00 Production: 10,000 units, Direct Materials put into production, 250,000 kg @ Rs. 2.85 Direct Labour: 58,000 hours @ Rs. 9.00, Actual Factory Overhead: Rs. 700,000 Required: a) Compute The Following: i) Material Price Variance ii) Material Quantity Variance iii) Labour Efficiency Variance iv) Labour Rate Variance v) Factory Overhead Variance. Give Journal Entries to record the above variance, and then close these variance into income and expense summary account. Compare Actual Unit Cost with Standard Unit Cost. The Red man Company manufactures a product whose standard unit cost is as follows: 000 Direct materials: 24 kilograms @ Rs. 3.00.. Rs. Direct Labour: 6 hours @ Rs. 8.00...... Factory Overhead: 50% of Prime Cost (72 +48) x 50%... Total Standard Unit Cost........ Actual Data for November, b) 72.00 48.00 60.00 180.00 Production: 10,000 units, Direct Materials put into production, 250,000 kg @ Rs. 2.85 Direct Labour: 58,000 hours @ Rs. 9.00, Actual Factory Overhead: Rs. 700,000 Required: a) Compute The Following: i) Material Price Variance ii) Material Quantity Variance iii) Labour Efficiency Variance iv) Labour Rate Variance v) Factory Overhead Variance. Give Journal Entries to record the above variance, and then close these variance into income and expense summary account. Compare Actual Unit Cost with Standard Unit Cost.
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aCompute the Following 1 Material Price variance Actual quantity purchased 250000 kg Actual price Rs 285 per kg Standard quantity allowed 10000 units ... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
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