ACME Incorporated has the following standard unit costs for a single product ...
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Accounting
ACME Incorporated has the following standard unit costs for a single product
| Direct material 12.0 Kg @ $1.65 per kg | $19.80 |
| Direct labour 4 hours @ $21.50 per hour | $86.00 |
| Variable manufacturing overhead 4 hours @ $16 per hour | $48.00 |
Actual data for the month is as follows:
| Direct materials purchased 19,600 Kg @ $1.75 per Kg | $34,300 |
| Direct labour incurred 5,500 hours @ $22.70 per hour | $124,850 |
| Variable manufacturing overhead incurred | $86,240 |
During the current month, 1,400 units were produced using 16,450 kg of material
Variable manufacturing overhead is applied based on direct labour hours.
Required:
Calculate the material, labour and variable manufacturing overhead variances for the month. (16 marks)
Show calculations and label variances (name of variance and favourable or unfavourable
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