Refer to the data in Exercise 10.23. Calculate the pure rate variance and joint rate efficiency variance for direct labour. Draw a graph of the direct labour variances similar to the graph in Exhibit 10.11

Refer to data in exercise 10.23

During June, Andrew Ltd’s material purchases amounted to 6500 kilograms at a price of $8 per kilogram. Actual costs incurred in the production of 2000 units were as follows:

Direct labour ………………………. $177 375……………….. ($27.50 per hour)

Direct material …………………….. $34 400 ………………… ($8 per kilogram)

The standards for one unit of Henderson’s product are as follows:

Direct labour ___________________________ Direct material

Quantity: 3 hours per unit ……………………. Quantity: 2 kilograms per unit

Rate: $27 per hour ………………………………… Price: 87.50 per kilogram



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