The following data relates to company X Ltd for 2019 and 2020: ...
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Accounting
The following data relates to company X Ltd for 2019 and 2020:
2019 2020
Used direct material (kg) 46,000 kg 45,000 kg
Cost direct material (per kg) $11.50 $10.50
Produced (units) 15,000 units 11,000 units
Required:
Calculate the cost effect of growth for direct materials. Show all workings and clearly indicate whether the effect is favourable (F) or unfavourable (U).
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