Question

In: Accounting

(1) The standard costs of wooden ducks on wheels, for the CURRENT year, for 5 mm...

(1) The standard costs of wooden ducks on wheels, for the CURRENT year, for 5 mm board and for cutting are as follows:-

5 mm board: 0.2 sq. metre at £4.50 per sq. metre.

Cutters: 1.5 minutes at £7.20 per hour.

In the most recent period, 120 wooden ducks on wheels were produced.

25 sq. metres of 5 mm board were requisitioned from stores at a total cost of £110.

2.75 hours were recorded for cutters at a total cost of £22.

Required

(a) Calculate the material price variance and material usage variance for 5 mm board

(ii) Calculate the wage rate variance and labour efficiency variance for cutters

Suggest possible reasons for the variances calculated.

(2) Given standard cost per unit:

Direct materials (4 kg. @ 75p per kg)

Direct labour (2 hrs @ £1.60 per hr)

Actual details are:

		£
Output produced (units)	38,000
Direct material purchased	180,000 kg	126,000
issued to production	154,000 kg
Direct labour	78,000 hrs	136,500

Calculate: Material and labour variances.

Expert Solution

Answer: (Question 1-a)

Answer to Question 1-(ii):

ekkarill92 answered 11 months ago

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