PT Lunar Raya uses a standard cost system to assist the evaluation process. Calculation standard cost per unit: Standard

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PT Lunar Raya uses a standard cost system to assist the evaluation process. Calculation
standard cost per unit:
Standard quantity Standard cost
Direct Raw Materials 4.40 kilos IDR 85,000 per kilo
Direct Labor 1.50 hours IDR 250,000 per hour

For the year 20x1, the company budgets a total production of 10,000 units. During
year 20x1, the actual production quantity is 9,500 units; with usage information and
Actual payments for direct materials and direct labor are as follows:

Price Quantity
Purchase and Use of Raw Materials
Direct 46,200 kilos IDR 76,000 per kilo
Payment for Direct Labor 11,900 hours IDR 295,000 per hour

The management of PT Lunar Raya uses the Management by Exception approach and determines
the tolerance threshold is 10% of the budget.

Requested:
a. Calculate budget values ​​and allowable standards for Direct Materials and Labor
directly based on the data in the question
b. calculate the total variance for direct materials and direct labor.
c. Results Based on the calculations in part b above, do you think the management of PT
Lunar Raya needs to worry about the total variance of direct materials and labor
direct work? Tell . (Hint: compare the variance value with the budget value)
d. calculate the price variance and the quantity variance for direct materials and labor
directly, as well as the comparison with the respective budget values
e. results Based on the calculations in section d above, do you think,
1. Does the management of PT Lunar Raya need to worry about the value of price and quantity?
variance for Direct Materials and Direct Labor? Tell.
2. How to interpret the value of price and quantity variance for Direct Raw Materials
and Direct Labor? And what are the possible causes for each?
difference
the
f. who is responsible for each variance that occurs for Material
Direct Labor and Direct Labor?
g. Provide recommendations for PT Lunar Jaya based on the results of your analysis in section e above