MAC2601 ASSIGNMENT 5 sem 2 of 2023 EXPECTED SOLUTIONS

Oscar the tutor
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i) total variance direct materials plastic
(350*90-340*100)
-2500

ii) (SP-AP)*AQ
(145-(5250/35)*1000*35
-5105


iii) (SR-AR)AH
Actual
hours 4987500/(150*350)
950
Standard
hours 900
labour rate variance 950
(SR-AR)AH
(145-150)*950
-4750

iv labour efficiency variance
(SH-AH)*SR
(900-950)*145
-7250

, variable manufacturing overhead spending
variance (where variable manufacturing
v) overheads vary with hours worked)

Actual Variable overhead rate per hour
1695750/(35*950)
51

(SR-AR)*AH
(60-51)*950
8550

variable manufacturing overhead
efficiency variance (where variable
manufacturing overheads vary with hours
vi) worked)

(SH-AH)*SP
(900-950)*60
-3000

VII) selling price variance
(AP-SP)*AU
(445000-(15750000/35))*35
-175000

B) higher wage demands by workers
More workers doing overtime work