Question: Please answer ASAP Crystal Ltd manufactures metal components for use in the manufacturing industry. The company uses a standard costing system and the following standards

Please answer ASAP

Crystal Ltd manufactures metal components for use in the manufacturing industry. The company uses a standard costing system and the following standards relate to each metal container:

Material: 3kgs of Material A at a price of 2.50 per kg.

Direct Labour: 2.5 hours of direct labour at a price of 5.20 per hour

Variable overheads are absorbed at a rate of 6.20 per labour hour

Fixed overheads are absorbed at a rate of 7.50 per labour hour.

During the month of March, the company produced and sold 1,200 metal components. The actual costs and data relating to the product were as follows:

Materials: 3,360 kgs at a total cost of 7,560

Direct Labour: 3,200 hours were worked at a total cost of 16,000

Variable overhead incurred was 16,500.

Fixed overheads incurred were 16,400.

Required:

(ii) Prepare a flexed budget for Crystal Ltd for the month of April 2020 for the costs of producing the 4,000 units. In relation to each input cost, calculate the total variance and indicate whether it is favourable or adverse

(i) In relation to the total labour variance calculated at (ii) above, break the variance into the following:

Labour rate

Labour efficiency

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