Q.2 Standard costs and Variance analysis Kasule was hired as a budget analyst at a large manufacturing business. His bos

[answerhappygod]

Q 2 Standard Costs And Variance Analysis Kasule Was Hired As A Budget Analyst At A Large Manufacturing Business His Bos 1 (95.27 KiB) Viewed 12 times

Q.2 Standard costs and Variance analysis Kasule was hired as a budget analyst at a large manufacturing business. His boss has asked that he reviews last year's master budget, actual results, and planned numbers, and calculate the variances for each category. The data table Kasule was given follows: Actual Results Standard $24.000 Units Sold $20.000 Revenues $2.500.000 $2.880.000 Total Variable Costs $1.900 200 $2.112.000 $599.800 $768.000 Contribution Margin Fixed Costs $570.000 $552.000 Operating Income $29.800 $216.000 Required: a) Create a table that shows the variances for each category that indicates whether favorable or unfavorable. (06 marks) b) Explain why there were such variances in each category in (a) above? (07 marks) com c) Halifax Company produces several products in its factory, including a karate robe. The uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 780 direct labor-hours each month and produce 1.950 robes. The standard costs associated with this level of production are as follows:
Total $35.490 Per Unit of Product $18.20 Direct materials Direct labor $7.020 3.60 Variable manufacturing overhead (based on direct labor-hours) $2.340 1.20 $23.00 During April, the factory worked only 760 direct labor-hours and produced 2.000 robes. The following actual costs were recorded during the month: Total Per Unit of Product Direct materials (6.000 yards). $36.000 $20 Direct labor $8.000 $4 Variable manufacturing overhead $3,800 $2 $26 At standard, each robe should require 2.8 yards of material. All of the materials purchased during the month were used in production. Compute the following variances for April: 1) The materials price variance (04 marks) The quantity variance (04 marks)