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1. The following relates to a product of RJ PLC for the month of December.
Selling price $45
Budgeted Sales quantity 3000 units
During the month, the selling price was lowered to $40 and the quantity sold saw a rise to 3350 units. Calculate the Sales Price Variance.
2. Jennifer purchases raw materials from her supplier at $4 per KG. However during a particular period, she had to switch suppliers, resulting in a price of $5 per KG. If the quantity purchased was 500 KG, calculate the Material Price Variance.
The following information relates to FH PLC.
Direct Labour 5 hours per unit @$8 per hour
Actual expenses for wages during the period
Production : 600 units
Direct Labour Hours : 3200 hours costing $30,500
3. Calculate the Labour Rate Variance.
4. Calculate the Labour Efficiency Variance.
5. Calculate the total labour variance.
6. KJ has the following information.
Budgeted Fixed Overhead $60,000
Budgeted Production 1000 units
Actual Fixed Overhead $55,000
Actual Production 1100 units
What is the fixed production overhead volume variance?
7. Due to poor wages being paid, many staff at KG PLC had left their jobs. Newer staff were hired, despite them being low skilled and less experienced. What will happen as a result of this with regards to the variances on labour rate?
8. The following information relates to the current level of production at HG PLC.
Units Produced 400 500
Raw Materials used(KG) 150 100
Cost of Material purchased and input $9000 $8000
What is the materials usage variance?
9. A company absorbs overheads at $18 per hour. The following data relating to the previous period;
Actual Hours worked 4,500
Budgeted hours 4,000
Standard hours for production 4,200
What was the fixed production overhead capacity variance?
10. “Preparing of standard costing reports will help the management to identify where costs are being incurred and what drives these.” – The statement is ;
11. Which of the following are causes of variances(select all that apply)?
A. Calculation errors
B. Planning errors
C. Operational factors