INFORMATION Royal Ltd uses the standard costing system. The standards and actual information for May 2022 for the only product that it manufactures are as follows:
standards
Direct materials
4kg @ $7 per kg
Direct labour
5 hours @ $60 per hour
Variable manufacturing overheads
$12 per labour hour
Normal production
12 000 units per month
Actual information for May 2022:
Direct materials used
43 000kg @ $7.50 per kg
Direct labour
56 000 hours @ $58 per hour
Variable manufacturing overheads
$649 600
Production
11 000 units manufactured
Answer & Explanation
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