2 Seashell Co planned to make 90,000 units of Choc in June. The...
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2 Seashell Co planned to make 90,000 units of Choc in June. The standard cost of a Choc unit is as follows. $ per unit Direct material 20 Direct labour 2 hours @ $12 per hour 24 Variable overhead rate $10 per labour hour 20 Fixed cost 16 80 Standard profit 40 Standard selling price 120 During the month of June, 99,000 units were produced, 216,000 labour hours were worked, $3,024,000 was spent on direct labour and $1,620,000 was spent on variable overheads. Required (a) What was the direct labour rate variance for June? (2 marks) (b) What was the variable overhead efficiency variance? (2 marks) The sales volume variance reported for June was $24,000 (A). Seashell Co is considering using standard marginal costing as the basis for variance reporting in the future. (c) What would be the correct sales volume variance to be shown in a marginal costing operating statement for June
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