Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 2 direct material and labour variance: ma

Question 2 Direct Material and Labour Variance: Manufacturer 10 marks During September, Wonderland Ltd material...

80.2K

Verified Solution

Question

Accounting

image

Question 2 Direct Material and Labour Variance: Manufacturer 10 marks During September, Wonderland Ltd material purchases amount to 7,000 kilograms at a price of $8.00 per kg. Actual costs incurred in the production of 2,700 units were as follows: Direct labour Direct material $118,611 $51,000 $19.10 per hour $8.00 per kilogram The standard for one unit of product is as follows: Direct Labour Direct material Quantity 2.5 hours per unit 2.5 kilograms per unit Price/Rate $21 per hour $7 per kilogram Required: Calculate the following variance, indicating whether each variance is favorable or unfavorable: (a) Direct material price variance. (2 % marks) (b) Direct material quantity variance. (2 %2 marks) (c) Direct labour efficiency variance. (2 72 marks) (d) Direct labour rate variance. (2 1/2 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

A 2^3 design is confounded in 4 blocks of size 2. The principal block contains treatments...

Basic Math
1.2K views

What type of therapy is hoping to be able toreplace or insert genetic material to...

Basic Math
1.2K views

The following data are the shoe sizes of some male students. The sizes are discrete...

Statistics
1.2K views

K OrganicPlus processes organic milk into plain yogurt OrganicPlus 830 yields 750 gallons of plain...

Statistics
1.2K views

A researcher is interested in whether the variation in the size of human beings is...

Calculus
1.2K views

Consider the graph shown in the figure which gives the velocity of an object moving...

Algebra
1.2K views

Click on the center of the graph of the function f x 6 2 4...

Accounting
1.2K views

Exercise 6-50 (Algo) Two-Stage Cost Allocation and Predetermined Rates (LO 6-1, 2, 3)...

Accounting
1.2K views

Racer Industries is currently purchasing Part No.76 from an outside supplier for $90 per unit....

Accounting
1.2K views

Below are transactions related to Oriole Company. (a) The...

Accounting
1.2K views

Estimating Share Value Using the DCF Model Following are forecasts of Home Depot's sales,...

Accounting
1.2K views

for each item that follows, identify the foundational principles of accounting that best describes it....