QUIZ TOPIC 10: STANDARD COSTING AND VARIANCE ANALYSIS

QUIZ AA025 ACCOUNTING 2

TOPIC 10: STANDARD COSTING AND VARIANCE ANALYSIS

 

Duniabola Sdn Bhd (DSB) manufactures sports products. Information related to the production of the product is as follows:

 

1.        Standard Costs:

Item	Rate	RM
Direct materials	15 meter @ RM10.00	150.00
Direct labour	8 hours @ RM14.00 per hours	112.00
Variable manufacturing overhead	8 hours @ RM10.00 per hours	80.00
Fixed manufacturing overhed	8 hours @ RM8.00 per hours	64.00
Standard cost		406.00

 

2.         Estimated activity is 20,000 hours were based on direct labor hours.

 

3.     Actual data of costs and activities that have been involved January 2015.

Purchase of direct materials	40,000 meter @ RM10.60 per meter
Direct material used (meter)	37,000 meter
Direct labour	21,000 hours @ RM13.40 per hours
Variable manufacturing overhead	RM228,000
Fixed manufacturing overhead	RM180,000
Production unit	2,500

 

Required:

Calculate:                                                                                                         

(i)     Direct materials price variance and quantity/usage variance.

      (24,000 (UF), 5,000 (F))

(ii)    Direct Labour rate variance and labour efficiency variance.

(12,600 (F), 14,000 (UF))

(iii)   Variable overhead expenditure variance and variable overhead efficiency variance.

      (18,000 (UF), 10,000(UF))

(iv)  Fixed overhead budget variance and fixed overhead volume variance.

      (20,000 (UF), 0)          

ANSWER

(i)

(ii)

(iii)

(iv)

As Salam and Hi everyone... My name is Puan Asmazatul Yusfiziati Binti Mohd Yusof CA(M) or you can call me Madam Fizi. I'm an Accounting lecturer at Negeri Sembilan Matriculation College (KMNS), Kementerian Pendidikan Malaysia. This blog (www.madamfizi.com) was created to share learning materials on the subject of Accounting for Matriculation, Form 6, Foundation, Diploma, Secondary School and related students.