Apple manufacturing company produces a single standard product. The standard overheadcost budgets are K 100,000 for this month is 20,000 direct labour hours based on theproduction budget.The standard cost card for the product is as follows:MaterialsDirect LabourFactory overheadK 100.005 pieces @ K 10.00 = K 50.005 hours @ K 5.00 = K 25.005 hour @ K 5.00 = K 25.00The following transactions occurred during the month of March 2007.(a) Direct materials purchased 3,000 pieces @ K 9.00.(b) Direct maerials requisition 1,900 pieces.(c) Actual direct labour costs 2,100 hours @ K 5.25(d) Production completed during March 420 units.Required: Calculate the materials and labour variances.

Variance is the result of the difference between the budgeted value and actual results. It is used…

Apple manufacturing company produces a single standard product. The standard overhead cost budgets are K 100,000 for this month is 20,000 direct labour hours based on the production budget. The standard cost card for the product is as follows: 5 pieces @ K 10.00 = K 50.00 Materials Direct Labour Factory overhead K 100.00 The following transactions occurred during the month of March 2007. (a) Direct materials purchased 3,000 pieces @ K 9.00. (b) Direct maerials requisition 1,900 pieces. (c) Actual direct labour costs 2,100 hours @ K 5.25 (d) Production completed during March 420 units. Required: Calculate the materials and labour variances. 5 hours@K 5.00 = K 25.00 5 hour @ K 5.00 = K 25.00

Apple manufacturing company produces a single standard product. The standard overhead cost budgets are K 100,000 for this month is 20,000 direct labour hours based on the production budget. The standard cost card for the product is as follows: 5 pieces @ K 10.00 = K 50.00 Materials Direct Labour Factory overhead K 100.00 The following transactions occurred during the month of March 2007. (a) Direct materials purchased 3,000 pieces @ K 9.00. (b) Direct maerials requisition 1,900 pieces. (c) Actual direct labour costs 2,100 hours @ K 5.25 (d) Production completed during March 420 units. Required: Calculate the materials and labour variances. 5 hours@K 5.00 = K 25.00 5 hour @ K 5.00 = K 25.00

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 20P: Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The...

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