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Question:
The Kaiserburger fast-food operates to the following pre-determined standards:
Raw material 50 kg @2.5 125 Direct labour 14 hrs @ 4.75 66.50
The Actual results are as follows:
Production 150 units Direct material purchased 7,000 kg @ a cost of Rs 18,200 Opening stock direct materials 1,300 kg Closing stock direct materials 850 kg Wages paid for 2020 hrs Rs 9898
Required:
(a) Determine the following variances: (i) Material price variance (ii) Material usage variance (iii) Labour rate variance (iv) Labour efficiency variance Briefly describe three causes for each why material price variance and labour rate variance occur.
what is test marketing ? Explain various approaches that are followed by FMCG company in test marketing
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