2 The budgeted and standard data for productivity include the following Direct labour Ten employees work for
Question:
2
The budgeted and standard data for productivity include the following
Direct labour
Ten employees work for 45 hour a week. The standard rate of pay is ksh 4 per hour. Output per hour is 40 kg of the product.
Direct material
Material quantity kg price per kg
X 60 2.00
Y 40 1.00
Z 100 1.40
From this standard matrix 180 kg of product is expected
Actual data for first week in April were as follows
Hours worked 45
Rate of pay ksh 4 per hour
Overhead incurred ksh 5400
Output 1980 kg
Production and consumption of materials were as follows:
Material Quantity (kg)
X 700
Y 440
Z 1120
Required
Calculate the following direct material variance for each material (10mks)
- Total
- Price
- Usage
- mix
Calculate the direct labor efficiency variance (10mks)