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Question - The standard cost of direct material is £3 per kg and the standard quantity is 2 kg per unit of output. The actual cost is £3.10 per kg and the actual quantity used is 1.8 kg per unit. 10,000 units are produced in the period. What is the direct material usage variance?
(a) £1,800 adverse (b) £4,200 favourable (c) £6,000 favourable (d) £6,200 favourable
Provide a recommendation as to whether an individual should buy, sell, or hold (if they already own it) the stock of this company. Your recommendation should be supported by an adequate explanation and reference to supporting analysis and ratios.
Francum Company has the following data: direct labor $241,270, direct materials used $183,580, total manufacturing overhead $232,980.
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Considering the nature of the production processes, the cost accountant of ABC Manufacturing decided to experiment with the department-specific allocation approach
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New Materials for Assembly Department. Calculate the number of equivalent units produced for the assembly department during January.
Shaffner Corporation produces three products, Alpha, Beta, determine the amount of joint costs to be allocated between the two joint products, Alpha and Gamma.
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