You have been given the following information about the production of Mizrahi AG, and are asked to provide the plant manager with information for a meeting with the vice president of operations.

The following is a variance report for the most recent period of operations.

Instructions

a. How many units were produced during the period?

b. How many kilograms of raw materials were purchased and used during the period?

c. What was the actual cost per kilogram of raw materials?

d. How many actual direct labor hours were worked during the period?

e. What was the actual rate paid per direct labor hour?

Transcribed Image Text:

Standard Cost Card Direct materials (5 kilograms at €4 per kilogram) Direct labor (0.8 hours at €10) Variable overhead (0.8 hours at €3 per hour) Fixed overhead (0.8 hours at €7 per hour) €20.00 8.00 2.40 5.60 €36.00 Variances Costs Total Standard Cost Price Quantity Direct materials €410,000 €2,095 F € 9,000 U Direct labor 164,000 3,906 U 22,000 U