Reference no: EM133106584
Question - Sophys Fashion Sdn Bhd is a business which produces and sells new designs of dress. Recently the company implements the standard costing system for controlling purposes.
Budgeted production and sales of the dress for the month of July 2020 are 8,700 units. The standard selling price per unit is RM80.
The standard requirement for direct material is 4 meters per unit while the standard requirement for direct labour is 5 hours per units. Both variable cost and fixed overhead costs are absorbed based on direct labour hour basis.
Standard costs for one unit of the dress are given below:
|
|
RM per unit
|
|
Direct material
|
18
|
|
Direct labour
|
25
|
|
Variable overhead
|
10
|
|
Fixed overhead
|
15
|
Actual data of the production and sales of the dress for the month of July 2020 are as follows:
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Production and sales
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8,900 units
|
|
Sales revenues
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RM756,500
|
|
Direct materials purchased and used
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35,400 meters at a cost of RM162,840
|
|
Direct labour
|
44,100 hours at a cost of RM224,469
|
|
Variable overhead cost
|
RM87,300
|
|
Fixed overhead costs
|
RM134,000
|
Required - Compute the following variances:
i. Direct material price variance
ii. Direct material usage variance
iii. Direct labour rate variance
iv. Direct labour efficiency variance
v. Variable overhead expenditure variance
vi. Variable overhead efficiency variance
vii. Fixed overhead expenditure variance
viii. Fixed overhead volume variance