(Material and Labour Variances). Following have set to manufacture a product by a company : been Direct Material: $ 2 units of 'A' @ $ 4 per unit 8.00 3 units of 'B' @ $ 3 per unit 9.00 15 units of C@ $ 1 per unit 15.00 Direct Labour : 3 labour hours @ $ 8 per labour hour 24.00 Total Standard Prime Cost 56.00 The company had manufactured and sold 6,000 units of the product material costs incurred were as follows : 12,500 units of 'A' $ @ 4.40 per unit ; 18,000 units of 'B'@ $ 2.80 per unit ; 88,500 units of "C' @ $1.20per unit. The company worked for 17,500 direct labour hours during the year. For 2,500 hours, the company paid @ $ 12 per labour hour, while for the remaining labour hours, it paid at the standard rate. You are required to calculate ; (i) Material price, Usage, Mixture and Yield variances; (ii) Labour rate and Efficiency variances.

(Material and Labour Variances). Following have set to manufacture a product by a company : been Direct Material: $ 2 units of 'A' @ $ 4 per unit 8.00 3 units of 'B' @ $ 3 per unit 9.00 15 units of C@ $ 1 per unit 15.00 Direct Labour : 3 labour hours @ $ 8 per labour hour 24.00 Total Standard Prime Cost 56.00 The company had manufactured and sold 6,000 units of the product material costs incurred were as follows : 12,500 units of 'A' $ @ 4.40 per unit ; 18,000 units of 'B'@ $ 2.80 per unit ; 88,500 units of "C' @ $1.20per unit. The company worked for 17,500 direct labour hours during the year. For 2,500 hours, the company paid @ $ 12 per labour hour, while for the remaining labour hours, it paid at the standard rate. You are required to calculate ; (i) Material price, Usage, Mixture and Yield variances; (ii) Labour rate and Efficiency variances.

Name: (Material and Labour Variances). Following have set to manufacture a
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Description: (Material and Labour Variances). Following have set to manufacture a product by a company :been Direct Material:$2 units of 'A' @ $ 4 per unit8.003 units of 'B' @ $ 3 per unit9.0015 units of C@ $ 1 per unit15.00Direct Labour :3 labour hours @ $ 8 pe

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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A Company establishes the following standards for the costs of one unit of its product. The standard production overhead costs per unit are bascd on direct-labor hours. Calculation for standard per unit cost is as follows: Std Cost Std Qty 3.00 kg | Direct Material Direct Labor Variable Overhead Fixed Overhead* |Total *based on practical capacity of 20,000 direct-labor hour per month Std Price/Rate $ 8.25 per kg $ 10.00 per hour $ 10.00 per hour $ 7.50 per hour 24.75 $ 20.00 2.00 hour $ 20.00 2.00 hour 15.00 2.00 hour 79.75 During December 2020, the Company purchased 30,000 kg of direct material at a total cost of $246,000. The total wages for December were $260,000, 75% of which were for direct labor. The Company manufactured 9,500 units of product during December 2020, using 28,400 kg of the direct material purchased in December and 18,900 direct-labor hours. Actual variable and fixed overhead cost were $200,000 and $150,000, respectively. The scheduled production for the month was…
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