ACW271 MANAGEMENT ACCOUNTING II TOPIC 3 TUTORIAL Question 1 The material and labour standard card for producing one unit

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ACW271 MANAGEMENT ACCOUNTING
II
TOPIC 3 TUTORIAL
Question 1
The material and labour standard card
for producing one unit of ABC is:
Materials
10kg of material A @ RM1 per kg

RM10
5kg of material B @ RM3 per kg

RM15

RM25
Labour
20 hours of grade 1 labour @ RM0.70 per
hour

RM14
30 hours of grade 2 labour @ RM0.50 per
hour

RM15
RM29
Total standard cost of material and
labour for 1
unit
Actual production was 100 units
Actual costs were:
Materials
950kg of material A costing

RM1, 000
RM54
510kg of material B costing

RM1, 400
Labour
2,100 hours of grade 1 labour costing

RM1, 450
RM2, 400
2,950 hours of grade 2 labour costing

RM1, 490
RM2, 940
Actual material and labour cost of
production
RM5, 340
Calculate the material price and usage
variance for material A and B, the labour rate and efficiency
variances for grade 1 and grade 2 labour.