Reference no: EM132823034
Question - Energis Manufacturers produces a product which has the following standard costs:
Material A: 4 kilograms at R10 per kilogram Material
B: 5 kilograms at R15 per kilogram
Direct labour: 6 hours at R10 per hour
Fixed overheads: R120 000
Budgeted production: 10 000 units
Actual results for November 2019 were as follows:
Material A: 50 000 kg at R12 per kilogram
Material B: 64 000 kg at R14 per kilogram
Direct labour: 66 000 hours at R11 per hour
Fixed overheads: R122 000
Production: 12 000 units
REQUIRED - Calculate the following:
1. Material mix variance
2. Material yield variance
3. Fixed manufacturing overheads volume capacity variance
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