A standard quantity of 2kilograms of material Z at a standard price of R4per kilogram is allowed
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Question:
A standard quantity of 2kilograms of material Z at a standard price of R4per kilogram is allowed for the production of one unit of product Zipline. The cost figures for the first quarter of 20.6 showed that 4400kg of material Z was purchased at R4.20per kg. 2000 units of product Zipline were produced using 4200 kg of material Z
Required calculate the following variances
2.1.1 Purchase price variance
2.1.2 Issue price variance
2.1.3 Quantity variance
2.1.4 Total material variance for the 4200 kg of material used
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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