As cost accountant of Rackets Ltd, you estimate the standard cost of making one unit is as
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Question:
As cost accountant of Rackets Ltd, you estimate the standard cost of making one unit is as follows:
Direct material 4 kilos at Ksh7 per kilo
Direct wages 5 hours at ksh 10 per hour
The actual cost of a batch of 1000 units was:
Direct material ksh 28960 (4328 kgs)
Direct wages ksh50200 (5370 hours)
(a) Calculate the following:
(i) The material price variance [2 marks]
(ii) The material usage variance [2 marks]
( (iv) The labour rate variance [2 marks]
(v) The labour efficiency variance [2 marks]
(vii) The total cost variance [2 marks]
Related Book For
Materials and process in manufacturing
ISBN: 978-0471656531
9th edition
Authors: E. Paul DeGarmo, J T. Black, Ronald A. Kohser
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