Barbados has prepared the following standard cost information for one unit of product zeta. 4 Kg...

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Barbados has prepared the following standard cost information for one unit of product zeta. 4 Kg @ S10 per Kg 2 hours @ $4 per hour $8 3 hours @S2.5 per hour $7.5 Direct Materials $40 Direct Labour Fixed Overheads The fixed overheads are based on a budgeted expenditure of S75,000 and budgeted activity of 30,000 hours. Actual results for the period were as follows: Production 9,000 units Materials 33,600 $336,000 Labour 16,500 hours S68,500 Fixed overheads S70,000 Required: Calculate the following in S and also mention if it is favorable or adverse: a. The material usage variance. b. Fixed Overhead Volume Capacity variance. c. Fixed Overhead Volume Efficiency variance. Barbados has prepared the following standard cost information for one unit of product zeta. 4 Kg @ S10 per Kg 2 hours @ $4 per hour $8 3 hours @S2.5 per hour $7.5 Direct Materials $40 Direct Labour Fixed Overheads The fixed overheads are based on a budgeted expenditure of S75,000 and budgeted activity of 30,000 hours. Actual results for the period were as follows: Production 9,000 units Materials 33,600 $336,000 Labour 16,500 hours S68,500 Fixed overheads S70,000 Required: Calculate the following in S and also mention if it is favorable or adverse: a. The material usage variance. b. Fixed Overhead Volume Capacity variance. c. Fixed Overhead Volume Efficiency variance.

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a Material Usage Variance Standard Quantity Actual quantity Standard Price S... View the full answer