Vulcan Supplements makes fuel additives for use in motor racing and uses a standard costing system...

 

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Vulcan Supplements makes fuel additives for use in motor racing and uses a standard costing system to monitor both sales and production costs to evaluate performance. The budgeted and actual prime cost data for the past month when 50,000 litres were produced is shown below: Standard prime costs: Standard Material Input cost per unit Standard labour costs Total standard product cost per unit 0.2 litres 0.05 hour Actual costs: Units produced this period: Direct material purchased: Direct material used in production: Direct labour hours and total cost: Required: Calculate the Direct Material Quantity Variance 50,000 litres 20,000 10,200 2,375 $3.50 per litres $48.00 per hour Total cost $ Cost per litre: Total cost: S 72,000 $3.60 114,570 0.70 $ 2.40 $ 3.10 $ Calculate the Direct Labour Efficiency Variance Vulcan Supplements makes fuel additives for use in motor racing and uses a standard costing system to monitor both sales and production costs to evaluate performance. The budgeted and actual prime cost data for the past month when 50,000 litres were produced is shown below: Standard prime costs: Standard Material Input cost per unit Standard labour costs Total standard product cost per unit 0.2 litres 0.05 hour Actual costs: Units produced this period: Direct material purchased: Direct material used in production: Direct labour hours and total cost: Required: Calculate the Direct Material Quantity Variance 50,000 litres 20,000 10,200 2,375 $3.50 per litres $48.00 per hour Total cost $ Cost per litre: Total cost: S 72,000 $3.60 114,570 0.70 $ 2.40 $ 3.10 $ Calculate the Direct Labour Efficiency Variance

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Direct Material Quantity Variance DMQV Standard Quantity StandardPrice ActualQuantity Standard Price ... View the full answer