Calculate direct material price variance

Assignment Help Cost Accounting
Reference no: EM132698087

PART A

Answer all the Questions:

1. Define Cost Accounting? Explain its Objectives and Classifications in detail?
2. Explain the difference between Financial Accounting and Cost Accouning.
3. Define the term cost driver and explain the role of this item in the computation of an overhead application rate.
4. The following information has been obtained from the records of AJ Corporation Ltd for the period from January 1 to June 30, 2013. Prepare a Cost Sheet.

 

PARTICULARS

1. 1.2013 $

30.6.2013 $

Cost of Raw Materials

10,000

7,500

Cost of Work in Progress

5,000

6,000

Cost of Stocks of finished Goods

25,000

22,500

Transactions during six months are :

 

 

Purchase of Raw Materials

225,000

 

Wages Paid

110,000

 

Factory-Overheads

40,500

 

Administration Overheads

25,000

 

Selling and Distribution Overhead

10,000

 

Sales

1,000,000

 

Prepare a Cost Sheet

5. Protest Industries produces only one product. The following revenues and cost have been estimated for the forthcoming month:
• Selling price, $ 217 per unit (SP)
• Variable cost, $ 178 per unit (VC)
• Fixed Cost, $ 79,000

The managers of the firm wish to know the following:
1. Calculate contribution margin per unit
2. Calculate contribution margin ratio.
3. BEP in units
4. Calculate BEP in sales.

6. AJ Inc. provides the following data for June 2009 when 12,000 Units are manufactured:
Standard Material Cost (Per Unit)
5.20 kg @ $ 9.25/kg
Actual Material Cost (Per Unit)
5.85 kg @ $ 12.8/kg
Standard Labor cost (Per Unit)
4.5 hrs @ $ 13/hr
Actual Labor cost (Per Unit)
4.30 hrs @ $ 14.2 /hr

Calculate:
a. Direct Material Price Variance
b. Direct Material Quantity/Usage Variance
c. Total Material Cost Variance
d. Direct Labor Rate Variance
e. Direct Labor Efficiency Variance
f. Total Labor Cost Variance

Reference no: EM132698087

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