Answer Happy

question a, b, c, d, e, f, and g
Backe and Smash Ltd manufactures a brand of workbench. The standard amount of laminated material allowed is 2 square meters per workbench. The standard price of materials is £0.90 per square meter. During the month of June 200 workbenches were laminated. The amount of material used was 430 square meters and the price paid was £0.95 per square meter. The management has set a standard labour rate of £4 per direct labour hour. Actual hours worked in June were 9,820 at an actual cost of £37,316. The standard allowance of direct labour hours for the output achieved was 10,000 hours. Required: a Direct material price variance [2 MARKS] b. Direct material usage variance [2 MARKS] c. Direct labour rate variance [2 MARKS) d. Direct efficiency variance [2 MARKS e. to explain the term standard costing [3 MARKS f. to outline the benefits which a company may obtain from a standard costing system [5 MARKS) g. to discuss the problems which may arise in the development and operation of a standard costing system [4 MARKS