can I get the answer for b please ? in details 27. Clarke...
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can I get the answer for b please ? in details
27. Clarke Enterprises manufactures electronic components. The following data applies to one of the products. Standards per unit of product: Direct material - Direct labour - 4 kg @ 2.25 per kg 2 hours @ 4.80 per hour Actual details for the period: Output produced in units - 38,000 () 378,000 Direct materials: Purchased - 180,000 kg Issued to production - 154,000 kg Direct labour - 78,000 hours 409,500 There was no work in progress at the beginning or end of the period. Required: b) State whether, in each of the following cases, the comment given and the suggested possible reason for the variance, is consistent or inconsistent with the variance you have calculated in (a) and explain why: [8 marks] Direct materials price variance: the purchasing manager has ignored the economic quantity and, by obtaining bulk quantities, has purchased material at less than the standard price; (1) Direct materials quantity variance: material losses in production were less than had been allowed for in the standard; (ii) Direct wages rate variance: lower than expected. the union negotiated wage increase was 0.45 (iii) Direct labour efficiency variance: the efficiency of labour was commendable
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