1.1 INFORMATION: Britelite Manufacturers produces a product which has the following standard costs: Material A: 3...

1.1 INFORMATION:

Britelite Manufacturers produces a product which has the following standard costs:

Material A: 3 kilograms at R20 per kilogram

Material B: 5 kilograms at R15 per kilogram

Direct labour: 8 hours at R10 per hour

Fixed overheads: R120 000

Budgeted production: 9 000 units

Actual results for February 2019 were as follows:

Material A: 32 500 kg at R22 per kilogram

Material B: 54 000 kg at R14 per kilogram

Direct labour: 88 000 hours at R12 per hour

Fixed overheads: R132 000

Production: 10 000 unit

REQUIRED:

Calculate the following:

1.1.1 Material mix variance (6)

1.1.2 Material yield variance (6)

1.1.3 Fixed manufacturing overheads volume capacity variance (3)

1.1.4 Fixed manufacturing overheads volume efficiency variance (2)

Solutions

Expert Solution

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Page No. Date Material Variance A B e D SRASO & Rosny SRAAQ AKXAR As 320x80000 20x32437.5 20x32500 =R640000 3648750 3K 650000 22x32500 R 715000 B = 15x 50000 15x S4000 14x54000 15xshob 54062.50 DR810937.50 3 K750000 =R810000 =R. 756000 SQ = Standasd Quantity for Actual out put Stanland out Put (audgeteel Production &Q For A = 80008 3 2 27000 9000 units 8000x 5 45000 - b SQ for Actual out fut | Production : Actual Produchiên 10000 units SQ For Actual Production For A 10000X 33 130000 kg, For A 10 000X S3 50000 kg. SR Standasd Rate AR-Actual Rate

ekkarill92 answered 1 year ago

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