QUESTION Nova Hair Solutions Berhad is factory that manufactures special head to toe body shampoo that...

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QUESTION Nova Hair Solutions Berhad is factory that manufactures special head to toe body shampoo that is suitable for both kids and adults. Given are the updated standard costs used as benchmark for each bottle of body shampoo produced by the factory for the year 2022: Direct material Direct labour Manufacturing overhead: - Variable -Fixed Ni ii. In year 2022, the company expected to produce a total of 500,000 bottles of body shampoo. The production requires a total of 200,000 labeur hours. Hi At the end of year 2022, the factory's costs accountant computed, summarised and reported the following details: iv. Standard quantity 500 litres 0.5 hours 0.5 hours 0.5 hours (d) (e) (0) (g) Standard price (RM) 8.00 per litre 6.00 per hour NWMIMS 10.00 per hour 5.00 per hour The total direct materials purchased in year 2022 were 250,000 litres at RM7.50 per litre. DMG034 The actual labour hours recorded for the production were 300,000 hours and total direct labour cost incurred were RM6.25 per hour. The company produced a total of 498,000 bottles of body shampoo during the year. The warehouse manager reported that the production used a total of 246,000 litres of direct material in the year 2022 Required Compute the variances below and determine whether each variance is favourable or otherwise. (a) Direct materials price variance (3 marks) (b) Direct material quantity variance (3.5 marks) (c) Direct labour price variance (3 marks) Page 3 of 7 The actual total manufacturing overhead cost incurred were RM3.74 million during the year. MANAGEMENT ACCOUNTING TRA2210 Direct labour quantity variance. Total overhead variance (3.5 marks) Based on your answers from (a) to (e), determine whether the Nova Hair Solutions Berhad's production in year 2022 was effective and efficiently performed or otherwise and provide reason for your answer. (1.5 marks) (35 marks) Assume you are the Assistant Factory Manager of Nova Hair Solutions Berhad. Provide at least ONE (1) suggestion to improve the production performance. (1 mark) (Total: 19 marks) QUESTION Nova Hair Solutions Berhad is factory that manufactures special head to toe body shampoo that is suitable for both kids and adults. Given are the updated standard costs used as benchmark for each bottle of body shampoo produced by the factory for the year 2022: Direct material Direct labour Manufacturing overhead: - Variable -Fixed Ni ii. In year 2022, the company expected to produce a total of 500,000 bottles of body shampoo. The production requires a total of 200,000 labeur hours. Hi At the end of year 2022, the factory's costs accountant computed, summarised and reported the following details: iv. Standard quantity 500 litres 0.5 hours 0.5 hours 0.5 hours (d) (e) (0) (g) Standard price (RM) 8.00 per litre 6.00 per hour NWMIMS 10.00 per hour 5.00 per hour The total direct materials purchased in year 2022 were 250,000 litres at RM7.50 per litre. DMG034 The actual labour hours recorded for the production were 300,000 hours and total direct labour cost incurred were RM6.25 per hour. The company produced a total of 498,000 bottles of body shampoo during the year. The warehouse manager reported that the production used a total of 246,000 litres of direct material in the year 2022 Required Compute the variances below and determine whether each variance is favourable or otherwise. (a) Direct materials price variance (3 marks) (b) Direct material quantity variance (3.5 marks) (c) Direct labour price variance (3 marks) Page 3 of 7 The actual total manufacturing overhead cost incurred were RM3.74 million during the year. MANAGEMENT ACCOUNTING TRA2210 Direct labour quantity variance. Total overhead variance (3.5 marks) Based on your answers from (a) to (e), determine whether the Nova Hair Solutions Berhad's production in year 2022 was effective and efficiently performed or otherwise and provide reason for your answer. (1.5 marks) (35 marks) Assume you are the Assistant Factory Manager of Nova Hair Solutions Berhad. Provide at least ONE (1) suggestion to improve the production performance. (1 mark) (Total: 19 marks)

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a Direct materials price variance Actual price per litre Standard price per litre 780 800 x 250000 l... View the full answer