Toledo Sdn Bhd manufactures aluminium based products. Below is information related to standard and actual costs for January 2022: Items Standard Actual Sales and production 50,000 unit 52,000 unit Direct materials 9kg/unit@RM9.00/kg 540,000 kg@RM8.60/kg Direct labour 3 hour/unit@RM12/hour 123,000 hours @ RM12.40 / hour Required: a) Calculate price variance and quantity variance for direct materials using a diagram approach. b) Calculate rate variance and efficiency variance for direct labour using a diagram approach.

Toledo Sdn Bhd manufactures aluminium based products. Below is information related to standard and actual costs for January 2022: Items Standard Actual Sales and production 50,000 unit 52,000 unit Direct materials 9kg/unit@RM9.00/kg 540,000 kg@RM8.60/kg Direct labour 3 hour/unit@RM12/hour 123,000 hours @ RM12.40 / hour Required: a) Calculate price variance and quantity variance for direct materials using a diagram approach. b) Calculate rate variance and efficiency variance for direct labour using a diagram approach.

Name: Toledo Sdn Bhd manufactures aluminium based products. Below is informa
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Toledo Sdn Bhd manufactures aluminium based products. Below is information related to standard and actual costs for January 2022:Items Standard ActualSales and production 50,000 unit 52,000 unitDirect materials 9kg/unit@RM9.00/kg 540,000 kg@RM8.60/kg

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

See similar textbooks

Similar questions

Midrand Ltd manufactures a single product and makes use of a standard costing system. The following actual figures relate to April 2020: Purchases and issues of raw material: Material A at R0.55 per kg 40 000 kg Material B at R0.80 per kg 29 000 kg Direct labour at R2.10 per hour R 28 770 Manufacturing overheads:Variable R 7 832fixed R 14 200 Standard prime cost per unit is:Material A at R0.50 per kg R0,75Material B at R0.90 per kg R0.90 Direct labour at R2.20 per hour R1.10Standard prime cost of production R 2.75 • Raw material stock is valued at standard…
QUESTION 4 Answer the questions from the information provided. 4.1 Study the ratios given below that were calculated for Project Mel for 2020 and 2019 and provide suitable comments for each one. INFORMATION 2020 2019 Operating profit margin 20% 14% Trade receivables period 35.78 days 28.75 days Acid test ratio 0.88:1 1.25:1 Return on capital employed 15.63% 21.67% Additional information : The interest rate on loans is 16%. : The credit terms to debtors are 30 days. 4.2 Use the information provided below to calcutate and comment on the following variances for September 2020. Your answers must indicate whether the variance is favourable or adverse. 4.2.1 Direct material usage variance 4.2.2 Variable overheads efficiency variance 4.2.3 Direct labour rate variance 4.2.4 Direct labour efficiency variance.
The following standard cost data are for Dito Ltd. for January 2019: Per unit: Direct material 15kg@$5/kg Direct labour 4hr@$12/hr During January, Dito produced 720 units of output, which was 30 units less than expected. Direct material purchased and used was 10,500 kg @ $5.25/kg. Direct labour was 2,900 hours @ 12.25/hr. Questions: What were the price and quantity variances for direct material, respectively? What were the rate and efficiency variances for direct labour, respectively?
Yong Trading has the following standard cost for its product: Direct material - 5 kg x $28/kg Direct labour - 6.5 hours x $33/hour Additional information for the month of January 2020: Units made - 1,300 Direct material bought - 2,450 kg for $63,700 Direct material used - 7,100 kg Direct labour - 6,300 hours (direct labour cost of $195,300 Requirements: a ) Calculate 1)Direct material price variance 2)Direct material quantity variance 3)Direct Labour rate variance 4) Direct labour efficiency variance determine whether each variance if favourable or unfavourable. b) why favorable direct labour efficiency variance occur? c) Discuss the usefulness of variance analysis to this company.
Kirchoff, Inc., manufactures a product with the following costs: Direct materials Per Unit Per Year P18.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses P11.90 P2.10 P1,422,000 P3.60 Fixed SG&A expenses The pricing calculations are based on budgeted production and sales P1,540,500
Q.11) Pak Cables SAOG makes four components P, Q, R and S for which costs in the forthcoming year are expected to be as follows: Product (code name) Production (Units) Unit Margin Costs: Direct Materials Direct Labour Variable production overheads P R S 2,000 4,000 8,000 6,000 Omani Rial Omani Rial Omani Rial Omani Rial 08 10 04 08 16 18 08 12 04 06 02 04 28 34 14 24 Directly attributable fixed costs per annum and committed fixed costs: Incurred as direct consequence of making P Incurred as direct consequence of making Q Incurred as direct consequence of making R Incurred as direct consequence of making S Other fixed costs (committed) Omani Rial 2,000 10,000 12,000 16,000 60,000 100,000 Directly attributable fixed costs are all items of cash expenditures that are incurred as a direct the product in house. A sub contractor has offered to supply units of P, Q, R and S for Omani Rial 24, Omani Rial 42, Omani 28 respectively. Required: A. Which of the components Pak Cables SAOG should make…
NXE manufacturing concern furnishes the following information: Standards: Material for 70kg finished products: 100kg Price of Material: $ 1 per kg Actual: Actual Production (Output) : 210000 Material Used : 280000 Cost of Materials 252000 Calculate (a) Material Usages Variance and (b) Material Price Variance
The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.
Mercury Bowie Sdn Bhd manufactures two products, the Y and the Z, which have the following standard selling price and standard costs per unit. Y Z RM RM Standard Selling Price 110 118 Direct Materials (RM4 per kg) 32 16 Direct Labour (RM10 per direct labour hour) 60 80 Variables Overhead (RM1 per machine hour) 4 6 During the next accounting period, the availability of resources are expected to be subjects to the following limitations: Direct Materials 3440 kg Direct Labour Hours 2880 hours Machine capacity 2760 hours The marketing department estimated that the maximum sales potential for product Y is limited to 420 units. There is no sales limitation for product Z. You are asked to advise how these limited facilities and resources can best be used so as to gain the optimum benefit from them. Required: 1.Determine by graphical means the optimal mix of Y and Z at Mercury Bowie Bhd Sdn…
Mercury Bowie Sdn Bhd manufactures two products, the Y and the Z, which have the following standard selling price and standard costs per unit. Y Z RM RM Standard Selling Price 110 118 Direct Materials (RM4 per kg) 32 16 Direct Labour (RM10 per direct labour hour) 60 80 Variables Overhead (RM1 per machine hour) 4 6 During the next accounting period, the availability of resources are expected to be subjects to the following limitations: Direct Materials 3440 kg Direct Labour Hours 2880 hours Machine capacity 2760 hours The marketing department estimated that the maximum sales potential for product Y is limited to 420 units. There is no sales limitation for product Z. You are asked to advise how these limited facilities and resources can best be used so as to gain the optimum benefit from them. Required: a.Determine by graphical means the optimal mix of Y and Z at Mercury Bowie Bhd Sdn…
A company has the following information in its standard cost card: £ Material 2.5kg at the price of £3/kg = 7.00 During the month the company recorded the following: Units produced = 2,500 units Material used = 7,850kg Material cost = £23,180 Calculate the material price variance. 2. Calculate the material usage variance. 3. Explain what is meant by the breakeven point, and its usefulness to a business.
Salle products manufacture and distribute a single product. The company, which intends to maintain its unit product sales price for the current year, has budgeted to sell 15,000 units. Sales revenue of RM 1,200,000 is expected. Fixed overheads are forecasted at RM 120,000 for the year. The variable costs per unit are as follows: Direct materials RM 40 Direct labour RM 12 Variable overheads RM 8 Required: Calculate for the current year the: contribution/sales ratio break-even point in sales revenue and units margin of safety as a percentage of sales budgeted profit