Success Sdn. Bhd. produces a product, P with the following standard costs and quantities: Raw materials...

   

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Success Sdn. Bhd. produces a product, P with the following standard costs and quantities: Raw materials usage per unit 2 kilograms Raw materials cost per kilogram RM5 Labour hours per unit Labour cost per hour 3 hours RMS The company's budgeted information for 2020 is as follows: • Budgeted sales and production of 4,000 units based on 12,000 budgeted direct labour hours. • Total budgeted variable overhead RM48.000. • Variable overheads are absorbed based on direct labour hours • The standard selling price of product P is RM34 per unit and the standard variable cost is RM20 per unit. Actual results for 2020 were as follows: • Actual sales and production 4,200 units at sales value of RM148,000. • Total variable overhead RM43,600. • Raw materials purchased and used during the year cost RM28.800 for 7,200 kilograms. • Direct labour costs were RM94,500 for 10,500 direct labour hours actually worked. (b) Calculate (1) Direct material price variance. (ii) Direct material usage variance. (iii) Direct labour rate variance. (iv) Direct labour efficiency variance. production overhead expenditure variance. (vi) Variable production overhead efficiency variance. (2 marks) (3 marks) (2 marks) (3 marks) (2 marks) (3 marks) (v) Variable Success Sdn. Bhd. produces a product, P with the following standard costs and quantities: Raw materials usage per unit 2 kilograms Raw materials cost per kilogram RM5 Labour hours per unit Labour cost per hour 3 hours RMS The company's budgeted information for 2020 is as follows: • Budgeted sales and production of 4,000 units based on 12,000 budgeted direct labour hours. • Total budgeted variable overhead RM48.000. • Variable overheads are absorbed based on direct labour hours • The standard selling price of product P is RM34 per unit and the standard variable cost is RM20 per unit. Actual results for 2020 were as follows: • Actual sales and production 4,200 units at sales value of RM148,000. • Total variable overhead RM43,600. • Raw materials purchased and used during the year cost RM28.800 for 7,200 kilograms. • Direct labour costs were RM94,500 for 10,500 direct labour hours actually worked. (b) Calculate (1) Direct material price variance. (ii) Direct material usage variance. (iii) Direct labour rate variance. (iv) Direct labour efficiency variance. production overhead expenditure variance. (vi) Variable production overhead efficiency variance. (2 marks) (3 marks) (2 marks) (3 marks) (2 marks) (3 marks) (v) Variable

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Solution a Calculation of Standard Cost per Unit SNo 14 89 10 11 12 19015 16 13 14 a Direct Material ... View the full answer