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)
Sumber : https://www.madamfizi.com/2023/03/quiz-topic-10-standard-costing-and.html