Reference no: EM132545552

Questions -

Q1. Write the formula of Material Quantity and Material Price Variance.

Q2. Write the formula of Labou Rate and Efficiency Variance.

Q3. Write the formula of Variable Manufacturing Spending and Efficiency Variance.

Q4. The following labor standards have been established for a particular product:

Standard labor-hours per unit of output 8.0 hours

Standard labor rate $13.10 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 4,000 hours

Actual total labor cost $53,000

Actual output 400 units

Calculate the Labour Rate and Efficiency Variance. Explain your answer (Show workings clearly).

Q5. The following materials standards have been established for a particular raw material used in the company's sole product:

Standard quantity per unit of output 0.1 kg

Standard price $18.20 per kg

The following data pertain to operations for the last month:

Actual materials purchased 5,700 kgs

Actual cost of materials purchased $100,320

Actual materials used in production 5,600 kgs

Actual output 55,800 units

Calculate the Material Price and Quantity Variance. Explain your answer (Show workings clearly).

Q6. The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output 5.6 hours

Standard variable overhead rate $19.15 per hour

The following data pertain to operations for the last month:

Actual hours 5,100 hours

Actual total variable overhead cost $99,195

Actual output 1,100 units

Calculate the Variable MOH Spending and Efficiency Variance. Explain your answer (Show workings clearly)

Q7. Explain which Material Variance (Quantity or Price) is calculated first and why is there a specific order in which these calculations are made. Discuss the responsibility of Production Manager and Purchasing Manager in relation to the calculation of Material Variances.

Q8. Explain the difference between relevant cost and sunk cost, with proper example.

Q9. What is Opportunity Cost? Give one example.