INFORMATION RegalLtd uses the standard costing system. The standards and actual information for May 2022 for the only product that it manufactures are as follows: STANDARDS Direct materials.............................4kg @ R7 per kg Direct labour..................................5 hours @ R60 per hour Variable manufacturing overheads..R12 per labour hour Normal production.........................12 000 units per month ACTUAL INFORMATION FOR MAY 2022: Direct materials used.......................43 000kg @ R7.50 per kg Direct labour.....................................56 000 hours @ R58 per hour Variable manufacturing overheads...R649 600 Production........................................11 000 units manufactured Use the information to calculate the following variances. In each case state whether the variance is favourable or unfavourable 3.1 Material quantity variance 3.2 Labour efficiency variance 3.3 Variable manufacturing overheads expenditure variance
INFORMATION
RegalLtd uses the
STANDARDS
Direct materials.............................4kg @ R7 per kg
Direct labour..................................5 hours @ R60 per hour
Variable manufacturing
Normal production.........................12 000 units per month
ACTUAL INFORMATION FOR MAY 2022:
Direct materials used.......................43 000kg @ R7.50 per kg
Direct labour.....................................56 000 hours @ R58 per hour
Variable manufacturing overheads...R649 600
Production........................................11 000 units manufactured
Use the information to calculate the following variances. In each case state whether the variance is favourable or unfavourable
3.1 Material quantity variance
3.2 Labour efficiency variance
3.3 Variable manufacturing overheads expenditure variance
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