Cummings Ltd manufactures a single product. The following is an extract from the Standard Cost Card for the month of July 2018. Description Standard Cost per unit Total $ $

Cummings Ltd manufactures a single product. The following is an extract from the Standard Cost Card for the month of July 2018. Description Standard Cost per unit Total $ $ Direct raw materials 4 metres 850.00 3,400.00 Direct labour 1 hour 400.00 400.00 Total 3800.00 The actual results for the month were as follows: Production 1,500 units Direct raw material purchased 5,750 metres for $5,002,500 Opening stock direct raw materials 400 metres Closing stock direct raw materials 350 metres Direct wages paid $577,500 for 1540 hours A. You are required to calculate and give one reason for each of the following variances: i. Direct material price variance. ii. Direct material usage variance. iii. Direct material total variance. iv. Direct material labour rate variance. v. Direct labour efficiency variance. vi. Direct labour total variance. B. State ONE (1) possible reason for the sub-variances calculated above.

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer