+1-415-315-9853

info@mywordsolution.com

## Accounting

 Accounting Basics Cost Accounting Financial Accounting Managerial Accounting Auditing Taxation

The standard cost sheet of a product provides detail for material and labor as shown below:

Direct material 4 kgs at Rs.7.50 per kg
Direct labor 2 hrs at Rs.16 per hour
Variable costs Rs 4 per direct labor hour

Actual details for the month of May are illustrated below:

Output produced in units                   38,000

Direct materials:                                                                            Rs.

Purchased                             180,000 kgs for                            1,260,000
Issued to production             154,000 kgs
Direct labor                            78,000 hours worked for               1,209,000
Variable costs incurred                                                               318,000

There was no work-in-progress at the starting or end of the month.

Required:

problem 1: Compute the variances for materials, labor and variable overheads.

problem 2: State whether in each of the given cases, the comment given and recommended as the possible reason for the variance, is consistent or inconsistent with the variance you have computed in your answer to above, supporting each of your conclusion with a short descriptive comment.

a) Direct materials price variance: the procurement manager has ignored the economic order quantity and, by getting bulk quantities, has purchased material at less than the standard price;

b) Direct materials usage variance: material losses in production were less than had been permitted for in the standard;

c) Direct wages rate variance:  the union negotiated wage raise was Rs1.50 per hour lower than expected;

d) Direct labor efficiency variance: the efficiency of labor was commendable.

problem 3: What factors must be considered when investigating the variances?

Cost Accounting, Accounting

• Category:- Cost Accounting
• Reference No.:- M96603

Have any Question?

## Related Questions in Cost Accounting

### Assignmentwhile a form of abc was being used by general

Assignment While a form of ABC was being used by General Electric back in the sixties, widespread use of ABC didn't began in the United States until the late eighties. The early focus of ABC was on developing more reliab ...

### Module 3 - slpstrategic choicessimulationin module 3 you

Module 3 - SLP Strategic Choices SIMULATION In Module 3, you will use CVP analysis to inform the pricing of your 3 products. SCENARIO CONTINUATION: You've now completed SLP2, and it the date is (once again) January 1, 20 ...

### Question 1 high-low methodtucson tractor inc has

Question 1 High-low method Tucson Tractor Inc. has accumulated the following data over a six month period   Indirect Labor Hours Indirect Labor Costs January......................... 400 \$ 6,000 February................. ...

### Discuss cost management as a professionname three

Discuss cost management as a profession Name three professional cost management organizations and explain their roles. Where in the corporate, not for profit, areas would cost accountants work and what types of work woul ...

### Cost behaviordetermining cost behavior please respond to

Cost Behavior Determining Cost Behavior: Please respond to one of the following: Option 1 Choose a company that interests you. It could be your current employer, a past employer, or even a future employer. Compare and co ...

### Instructionsnbspbull all questions carry equal marksbull

Instructions:   • All Questions carry equal marks. • All Questions are compulsory • All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3in not more than 500 words for each subse ...

### Accounting assignment1 punch products inc is considering

Accounting Assignment 1. Punch Products, Inc. is considering purchasing a new production machine and has assembled the following information from two vendors of the machine that it is considering buying:   A Products B P ...

### Write 500 words that respond to the following

Write 500 words that respond to the following questions: • Discuss what absorption, variables, and throughput costing are. • Determine when each would be used. • Provide an explanation and example of all three.

### Assignmentdolan products is a small family owned audio

Assignment Dolan Products is a small, family owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers ...

### Problem 1 master budgetomega inc has developed the

Problem 1: Master Budget Omega, Inc. has developed the following sales forecast for the first six months of the coming year Month Sales (in units) January 30,000 February 50,000 March 70,000 April 80,000 May 60,000 June ...

• 13,132 Experts

## Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

### WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

### Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

### Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

### Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

### Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro