Sheep Coats Ltd manufactures wool coats. The company uses a standard costing method. The information below...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sheep Coats Ltd manufactures wool coats. The company uses a standard costing method. The information below applies to the activities of Sheep Coats Ltd for the financial year ended 31 March 2023. The actual production is 6 000 units and costs in Rands for the period were as follow: Cost component Direct material Direct labour Variable manufacturing overheads Fixed manufacturing overheads 8 400 metres @ R22 per metre 4 000 hours @ R20 per hour 4 000 hours @ R7.50 per hour R 184 800 80 000 30 000 45 000 There is no change in the opening and closing inventory of material. Accordingly, the quantity purchased equals the quantity used. The standard cost card for the wool coats is as follow: Time Rands 1.3 metres, R20 per metre R18 per hour R8 per hour R6 per unit Direct material Direct labour Variable manufacturing overheads Fixed manufacturing overheads 42 minutes 42 minutes The normal production is 7 000 units per annum. REQUIRED: 3.1 Prepare the total standard cost per unit. (5 marks) 3.2 Prepare a flexible budget based on the information provided as well as your answers in 3.1. (4 marks) 3.3 Calculate the following variances and clearly indicate for each variance whether it is a favourable or an unfavourable variance: 3.3.1 Direct material variances (Price and Usage) (6 marks) (6 marks) 3.3.2 Direct labour variances (Rate and Efficiency) 3.3.3 Variable manufacturing overhead variances (Rate and Efficiency) (6 marks) 3.3.4 Fixed manufacturing overhead variances (Expenditure and Volume) Sheep Coats Ltd manufactures wool coats. The company uses a standard costing method. The information below applies to the activities of Sheep Coats Ltd for the financial year ended 31 March 2023. The actual production is 6 000 units and costs in Rands for the period were as follow: Cost component Direct material Direct labour Variable manufacturing overheads Fixed manufacturing overheads 8 400 metres @ R22 per metre 4 000 hours @ R20 per hour 4 000 hours @ R7.50 per hour R 184 800 80 000 30 000 45 000 There is no change in the opening and closing inventory of material. Accordingly, the quantity purchased equals the quantity used. The standard cost card for the wool coats is as follow: Time Rands 1.3 metres, R20 per metre R18 per hour R8 per hour R6 per unit Direct material Direct labour Variable manufacturing overheads Fixed manufacturing overheads 42 minutes 42 minutes The normal production is 7 000 units per annum. REQUIRED: 3.1 Prepare the total standard cost per unit. (5 marks) 3.2 Prepare a flexible budget based on the information provided as well as your answers in 3.1. (4 marks) 3.3 Calculate the following variances and clearly indicate for each variance whether it is a favourable or an unfavourable variance: 3.3.1 Direct material variances (Price and Usage) (6 marks) (6 marks) 3.3.2 Direct labour variances (Rate and Efficiency) 3.3.3 Variable manufacturing overhead variances (Rate and Efficiency) (6 marks) 3.3.4 Fixed manufacturing overhead variances (Expenditure and Volume)
Expert Answer:
Answer rating: 100% (QA)
31 Total Standard Cost per Unit Direct material 3 meters at R20 per meter R60 Direct labor 42 minutes at R18 per hour R1260 Variable manufacturing overhead R8 per hour R8 Fixed manufacturing overhead ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
A marble accelerates uniformly from 5.56 m / s to a speed of 12.10 m / s over a distance of 9.3 m . Determine how much time the marble was accelerating?
-
Harriet Ltd is a South African company that manufactures commercial buses and trucks. The companys products are customer-focused, technologically advanced and fuel efficient. This has propelled the...
-
Study the information given below and answer the following questions: (25 Marks) 1.1 Calculate the Payback Period of both machines (answers expressed in years, months and days). (5 marks) 1.2 Which...
-
Inscribe a detailed paper on RFID Solutions and Standards in the Transportation Industry.
-
Water flows full in an asphalt half hexagon channel of bottom width W. The flow rate is 12 m3/s. Estimate W if the Froude number is exactly 0.6.
-
Let W V be a subspace. (a) Prove that dim W < dim V. (b) Prove that if dim W = dim V = n < , then W = V. Equivalently, if W V is a proper subspace of a finite-dimensional vector space, then dim W <...
-
A panel of 8 judges was asked to rate each of 3 models developed by engineering students on the likelihood that these models can be practically implemented to harness the controlled fusion energy....
-
The December 22, 2009, edition of the Wall Street Journal has an article by Kevin Kelliker entitled In Risky Move, GM to Run Plants Around Clock. Instructions Read the article and answer the...
-
Please explain why the decision is administrative in character and how is it made under an enactment. The statute is below and the made up case study is after the statute (also made up). PART 2...
-
write two pages review for the article The 4 dimensions of digital trust, charted across 42 countries by Bhaskar Chakravorti, Ajay Bhalla, and Ravi Shankar Chaturvedi to give a personal opinion about...
-
The table below shows new investment opportunities for Enterprise. Enterprise is seeking an opportunity to gain profit from a new investment. The following information was collected about the...
-
Mr Ang started a cleaning service and invested the followings: (i) (ii) Cash $ 30,000 Bank Loan $ 10,000 Calculate the Capital. (iii) Computers and software $ 15,000 (iv) Capital $ ?
-
Most of the organization will have a dilemma to choose the ERP package either the Commercial of the Shelf System or the Vendor who could perform comprehensive customization base on organization...
-
Russell recently invested 1 2 0 0 0 0 to provide for his child college education. the total cost of a college education will be 3 1 5 0 0 0 when she enrolls in 1 7 years. what annualy compound rate...
-
Explain whether the company should invest in the Canadian facility and why?
-
What strategies can leaders employ to foster a culture of ethical integrity within organizations, integrating principles of ethical leadership theory and transformational leadership approaches ?
-
If the life style factor that is causing infertility in a young male is identified. Which of the following life style modification will have no effect? a) Weight gain b) Less exercise c) Vegetarian...
-
If the joint cost function for two products is C(x, y) = xy2 + 1 dollars (a) Find the marginal cost (function) with respect to x. (b) Find the marginal cost with respect to y.
-
David and Darlene Jasper have one child, Sam, who is 6 years old. The Jaspers reside at 4639 Honeysuckle Lane, Los Angeles, CA 90248. David's Social Security number is 577-11-3311, Darlene's is...
-
Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. a. Assuming Phil's wages were $27,000 and Linda's wages were...
-
Tom has a successful business with $100,000 of income in 2012. He purchases one new asset in 2012, a new machine which is 7-year MACRS property and costs $25,000. If you are Tom's tax advisor, how...
-
Explain the role of robotics and smart factories in manufacturing, services, and supply chains.
-
What is CAD/CAE? Provide one nontextbook example.
-
Research and write a short onetwo page paper on recent advances in robotics and their applications.
Study smarter with the SolutionInn App