Page 300 - P1 Integrated Workbook STUDENT 2018
P. 300
Subject P1: Management Accounting
3.6 B
Material Standard Actual Mix At Mix
mix input variance standard variance
price
Litres Litres Litres $ $
A 1,600 1,800 200 (A) 6.00 1,200 (A)
B 4,800 4,700 100 (F) 0.50 50 (F)
C 3,200 3,100 100 (F) 3.00 300 (F)
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9,600 9,600 850 (A)
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3.7 A
The labour rate variance is based on the actual hours paid of 2,450.
The actual rate of pay was = $57,575/2,450 hours = $23.50 per hour.
When compared to the revised hourly labour rate of $23 per hour this gives an
adverse variance of $0.50 per hour, and a total adverse variance
= $0.50 × 2,450 hours = $1,225
3.8 C
3.9 B
The weighted average labour rate per hour = (50% × $80) + (50% × $20) = $50
Unskilled labour is therefore $30 below this.
The actual hours were 8 and the standard hours were 10, giving a variance of
2 hours.
The mix variance for unskilled labour = 2 hours × $30 = $60.
Because the business has used less of the least expensive labour the variance
will be adverse.
3.10 D
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