Calculate the eight cost variances

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Reference no: EM133502737

Question: Everbright Electronics Ltd, a manufacturing company, uses a standard costing system for planning and control purposes. Details of the standard costs for each unit of goods produced are as follows: Direct materials (5 kg at $6.00) Direct labour (3 hours at $15.00) Manulacturino overhead Variable (3 direct labour hours (@ $6.00) Fixed (3 direct labour hours a $12.00) Total standard cost $30 $45 S18 $36 $129 The budgets prepared for the last quarter revealed that the budgeted fixed overhead was $90,000 with a budgeted production volume of 2.500 units. After the quarter ended, the accountant of the company extfacted the following actual results from the costing system for the last quarter: Production volume Direct materials (18,000 kg at $6.30) Direct labour (8,900 hours at $15.60) Ma: facturing overhead: table Fixed 3,000 units S113.400 $138.840 $51.000 $93.000 Reauired: For the purpose of preparing the monthly performance report for the last month, calculate the following eight cost variances (r) Direct material price variance (DMPV) (in) Direct material quantity variance (DMOV) Min Directlabour rate ance (DLRV) (v) Directlabour efticiency variance (DLEV (v) Variable overhead spending variance (VOHSV) (vi) Variable overhead efficiency variance (VOHEV) (vii) Fixed overhead budget variance (FOHBV) (viii) Fixed overhe slume

Reference no: EM133502737

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