The Berjaya Manufacturing Company (BMC) produces an industrial chemical product. At the beginning of the year,...

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The Berjaya Manufacturing Company (BMC) produces an industrial chemical product. At the beginning of the year, BMC had the following standard costing sheet: Direct materials (10 kg at RM1.60) Direct labour (0.75 hr at RM18.00 per hr) Fixed overhead (0.75 hr at RM4.00 per hr) Variable overhead (0.75 hr at RM3.00 per hr) The actual results for the year are as follows: Unit produced: 70,000. RM 16.00 13.50 3.00 2.25 Direct materials purchased: 745,000 kg at RM1.50 per pound. Direct materials used: 738,000 kg. Direct labour: 56,000 hours at RM1,002,400. Fixed overhead: RM215,000. Variable overhead: RM175,400. Required: a) Compute material price variance and material quantity variance. Find the total variance and explain your answer. b) Compute direct labour rate variance and direct labour efficiency variance. Find the total variance and explain your answer. The Berjaya Manufacturing Company (BMC) produces an industrial chemical product. At the beginning of the year, BMC had the following standard costing sheet: Direct materials (10 kg at RM1.60) Direct labour (0.75 hr at RM18.00 per hr) Fixed overhead (0.75 hr at RM4.00 per hr) Variable overhead (0.75 hr at RM3.00 per hr) The actual results for the year are as follows: Unit produced: 70,000. RM 16.00 13.50 3.00 2.25 Direct materials purchased: 745,000 kg at RM1.50 per pound. Direct materials used: 738,000 kg. Direct labour: 56,000 hours at RM1,002,400. Fixed overhead: RM215,000. Variable overhead: RM175,400. Required: a) Compute material price variance and material quantity variance. Find the total variance and explain your answer. b) Compute direct labour rate variance and direct labour efficiency variance. Find the total variance and explain your answer.

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Answer a Material Price Variance Standard Price RM160 per kg Actual Price RM150 per kg Actual Quanti... View the full answer