Sap Sdn. Bhd. is a wholesale manufacturer of tea products. It operates a variable costing system....
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Sap Sdn. Bhd. is a wholesale manufacturer of tea products. It operates a variable costing system. Given below, is information relating to one of its products, i.e. bottled premium tea leaves-grade A, which is made in one of the company departments: - Bottled premium tea leaves-grade A Standard variable product cost Unit (RM) Direct material (6 kilograms at RM4 per kg) Direct labour (1 hour at RM7 per hour) Variable production overhead (1 direct labour hour) 24 Direct materials purchased and used, 113,500kg Direct labour, 17,800 hours Variable production overhead incurred Fixed production overhead incurred 7 3 34 Additional information Variable production overhead varies with direct labour hours of input Budgeted fixed production overhead per month is RM100,000 Budgeted production is 20,000 bottles per month Actual production and costs for one of the months were as follows: Bottles produced 18,500 bottles (RM) 442,650 129,940 58,800 104,000 735,390 Required: Compute the following variances and give reasons for the variances: a. Material price variance b. Material usage variance c. Direct labour variance d. Direct labour efficiency variance e. Variable overhead spending variance f. Variable overhead efficiency variance g. Fixed overhead spending variance (3 marks) (3 marks) (3 marks) (3 marks) (3 marks) (3 marks) (2 marks) (Total: 20 marks) Sap Sdn. Bhd. is a wholesale manufacturer of tea products. It operates a variable costing system. Given below, is information relating to one of its products, i.e. bottled premium tea leaves-grade A, which is made in one of the company departments: - Bottled premium tea leaves-grade A Standard variable product cost Unit (RM) Direct material (6 kilograms at RM4 per kg) Direct labour (1 hour at RM7 per hour) Variable production overhead (1 direct labour hour) 24 Direct materials purchased and used, 113,500kg Direct labour, 17,800 hours Variable production overhead incurred Fixed production overhead incurred 7 3 34 Additional information Variable production overhead varies with direct labour hours of input Budgeted fixed production overhead per month is RM100,000 Budgeted production is 20,000 bottles per month Actual production and costs for one of the months were as follows: Bottles produced 18,500 bottles (RM) 442,650 129,940 58,800 104,000 735,390 Required: Compute the following variances and give reasons for the variances: a. Material price variance b. Material usage variance c. Direct labour variance d. Direct labour efficiency variance e. Variable overhead spending variance f. Variable overhead efficiency variance g. Fixed overhead spending variance (3 marks) (3 marks) (3 marks) (3 marks) (3 marks) (3 marks) (2 marks) (Total: 20 marks)
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Answer aMaterial price varianceActual quantity consumedstandard priceActual quantity consumedactual price here Actual quantity consumed per unit113500 ... View the full answer
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