Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 22 Jul 2017 My Price 9.00

manufacture a product

The following standards have been set to manufacture a product:

   

Direct Materials:

  

2 units of P at Rs. 4 per unit

8.00

3 units of Q at Rs. 3 per unit

9.00

15 units of R at Re. 1 per unit

15.00
 

32.00

Direct Labour – 3 hrs @ Rs. 8 per hr

24.00

Total Standard prime cost

56.00

The company manufactured and sold 6,000 units of the product during the year. Direct materials cost is as follows:

12,500 units of P at Rs. 4.40 per unit.

18,000 units of Q at Rs. 2.80 per unit.

88,500 units of R at Rs. 1.20 per unit.

The company worked for 17,500 direct labour hours during the year. For 2,500 of these hours, the company paid at Rs. 12 per hour, while for the remaining the wages were paid at the standard rate.

Calculate material price and usage variances, and labour rate and efficiency variances.

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Jul 2017 01:07 PM My Price 9.00

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