Safe and Sound Limited (SSL) produces chain link fencing for security fencing. The standard prime costs for
Fantastic news! We've Found the answer you've been seeking!
Question:
The standard prime costs for each metre of fencing is given below:
Standard material cost 400 meters wire
Direct labour hour 0.25 hour
During the year SSL produced 150,000 linear metres of their chain link product.
Actual costs during the period:
During the year, SSL purchased 75,000,000 metres of the raw wire used to make their product for a cost of $30,750,000. (This was the only stock used for all production this year)
SSL used 61,200,000 metres of wire (all at the purchased price per metre) and they worked 36,750
Direct labour hours at a total cost of $1,572,510.
Calculate the Direct Labour Efficiency Variance
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: