The following information is available for Simply Ltd. which is a company that uses standard costs.
Product ZZ 48 for month 11 of last year:
WAGES
Rate 1 Rate 2
Standard Cost 400 hours at £5 per hr 200 hours at £8 per hr
Actual Cost 390 hours at £4 per hr 300 hours at £9 per hr
MATERIALS
Month 11 Grade A Grade B
Standard Cost 100 Kgs at £20 per kg 250 Kgs at £10 per kg
Actual Cost 120 Kgs at £19 per kg 260 Kgs at £8 per kg
REQUIRED
(a) Calculate and analyse the total variance for the month between:
(i) Material price, material usage and material cost variances.
(ii) Labour rate, labour efficiency and labour cost variances.
I have worked this out in my own way..but i think it is wrong..can somebody help me answering this? Thanks very much to whoever answers this.