A. Budgeted production of product V is 650 units each period. The standard cost card for product V contains the followin
Posted: Wed May 04, 2022 6:35 am
A. Budgeted production of product V is 650 units each period. The standard cost card for product V contains the following information
..........................................................................................................................£ per unit Ingredients 12 litres @ £4 per litre 48 Direct labour 3 hours @ £9 per hour 27 Variable production overhead 3 hours @ £2 per hour 6 During the latest period, 670 units of product V were produced. The actual results recorded were as follows: Ingredients purchased and used 8,015 liters £33,663 Direct labour 2,090 hours £17,765 Variable production overhead £5,434 Qn1. The ingredients price variance is:
a) £1,503 favourable
b) £1,503 adverse
c) £1,603 favourable
d) £1,603 adverse
B. The ingredients usage variance is:
a) £100 favourable
b) £100 adverse
c) £105 favourable
d) £860 adverse
C. The labour rate variance is
a) £325 favourable
b) £325 adverse
c) £1,045 favourable
d) £1,045 adverse
D. The labour efficiency variance is
a) £680 adverse
b) £720 adverse
c) £720 favourable
d) £1,260 adverse
E. . The variable overhead expenditure variance is:
a) £1,254 favourable
b) £1,254 adverse
c) £1,534 favourable
d) £1,534 adverse
..........................................................................................................................£ per unit Ingredients 12 litres @ £4 per litre 48 Direct labour 3 hours @ £9 per hour 27 Variable production overhead 3 hours @ £2 per hour 6 During the latest period, 670 units of product V were produced. The actual results recorded were as follows: Ingredients purchased and used 8,015 liters £33,663 Direct labour 2,090 hours £17,765 Variable production overhead £5,434 Qn1. The ingredients price variance is:
a) £1,503 favourable
b) £1,503 adverse
c) £1,603 favourable
d) £1,603 adverse
B. The ingredients usage variance is:
a) £100 favourable
b) £100 adverse
c) £105 favourable
d) £860 adverse
C. The labour rate variance is
a) £325 favourable
b) £325 adverse
c) £1,045 favourable
d) £1,045 adverse
D. The labour efficiency variance is
a) £680 adverse
b) £720 adverse
c) £720 favourable
d) £1,260 adverse
E. . The variable overhead expenditure variance is:
a) £1,254 favourable
b) £1,254 adverse
c) £1,534 favourable
d) £1,534 adverse