Question 2 White Black & Co operates a variance accounting system, producing a single product. For...

 

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Question 2 White Black & Co operates a variance accounting system, producing a single product. For the month of January 2022, the company plan to produce and sell 10,000 units of a single product which has the following standard production unit cost details:- Direct Material Direct Labor Variable Overhead Fixed Overhead 8.00 meter 1.25 hours Direct Labor 1.25 hours 1.25 hours Currently the standard selling price of the product is RM180 per unit. However, in the last meeting it was discussed that the price needs to be revised. Actual results were as follows: Actual variable overheads Actual fixed overheads Units produced and sold 9,000 Actual total sales RM1,656,000 Materials purchased and used 74,000 meters at a total cost of RM828,800 RM 10.80 per meter RM 18.00 per hour RM 6.00 per hour RM13.60 per hour 10,910 hours paid, costs RM205,200 10,800 hours worked. RM 70,000 RM 168,000 Required 1. Calculate ALL variances and prepare and operating statement for the month ending 31 January 2022. Question 2 White Black & Co operates a variance accounting system, producing a single product. For the month of January 2022, the company plan to produce and sell 10,000 units of a single product which has the following standard production unit cost details:- Direct Material Direct Labor Variable Overhead Fixed Overhead 8.00 meter 1.25 hours Direct Labor 1.25 hours 1.25 hours Currently the standard selling price of the product is RM180 per unit. However, in the last meeting it was discussed that the price needs to be revised. Actual results were as follows: Actual variable overheads Actual fixed overheads Units produced and sold 9,000 Actual total sales RM1,656,000 Materials purchased and used 74,000 meters at a total cost of RM828,800 RM 10.80 per meter RM 18.00 per hour RM 6.00 per hour RM13.60 per hour 10,910 hours paid, costs RM205,200 10,800 hours worked. RM 70,000 RM 168,000 Required 1. Calculate ALL variances and prepare and operating statement for the month ending 31 January 2022.

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1 Direct Material Price Variance Standard price per unit of direct materials Actual price per unit o... View the full answer