70.2K
Verified Solution
Link Copied!
The budgeted and standard data for the productivity include the following
Direct labour
Ten employees work for 4 hour a week.The standard rate of pay is ksh. 4 per hour.Output per hour is 40 kg of the product.
Direct material
Material quantity in kg price per kg
x 60 2.00
y 40 1.00
z 100 1.40
From this standard matrix 180kg of product is expected.Actual data for first week of April were as follows
Hours worked 45
Rate of pay ksh 4 per hour
Overhead incurred ksh 5400
Output 1980 kg
Production and consumption of materials were as follows
Material Quantity (kg)
x 700
y 440
z 1120
Required :
(a) Calculate the following direct material variance for each material (10mks)
(i) Total
(ii) Price
(iii) Usage
(iv) Mix
(b) Calculate the direct labour efficiency variance
Answer & Explanation
Solved by verified expert
