Reference no: EM132596285

MNC Inc is involved in the manufacturing of watches. The standard and actual figures are as follows:

                                               Standard                         Actual

Materials quantity                        50 units                    45 units

Material price per unit                   AED 1.00                    AED 0.80

Labour hours                                    1000 hrs                  900 hrs

Rate per hour                                   AED 0.50            AED 0.40

Question a) Calculate material cost variance and show whether it is favourable or unfavourable.

Question b) Calculate material price variance and show whether it is favourable or unfavourable.

Question c) Calculate material usage variance and show whether it is favourable or unfavourable.

Question d) Calculate labour cost variance and show whether it is favourable or unfavourable.

Question e) Calculate labour rate variance and show whether it is favourable or unfavourable.