d. During June 2019, Maju Berhad experimented with fewer senior technicians and more of assistant technicians in order to save costs of production. Advise Maju Berhad on whether to continue with the new labour mix policy. Calculate the variable overhead expenditure and efficiency variance for month of June 2019.
d. During June 2019, Maju Berhad experimented with fewer senior technicians and more of assistant technicians in order to save costs of production. Advise Maju Berhad on whether to continue with the new labour mix policy. Calculate the variable overhead expenditure and efficiency variance for month of June 2019.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
![d. During June 2019, Maju Berhad experimented with fewer senior technicians and more of
assistant technicians in order to save costs of production. Advise Maju Berhad on whether
to continue with the new labour mix policy.
Calculate the variable overhead expenditure and efficiency variance for month of June
2019.
е.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ac0ebc7-589f-4b4f-8c5a-7b2fcd522f54%2Fe1975a92-c244-4340-bdc7-46a5619031bb%2Fpcwq6p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:d. During June 2019, Maju Berhad experimented with fewer senior technicians and more of
assistant technicians in order to save costs of production. Advise Maju Berhad on whether
to continue with the new labour mix policy.
Calculate the variable overhead expenditure and efficiency variance for month of June
2019.
е.
![Maju Berhad manufactures various chemicals compounds for industrial use in domestic and
overseas market. One of its compound, called Sinar, is prepared using an elaborated distilling
process and was sold in the market at the price of RM110 per unit. The company's
management is anxious to determine the efficiency of Sinar production activities for the month
of June 2019. The standard cost card for compound Sinar is given as follows:
RM
50.00
Direct materials (2.5 kg x RM20.00/kg)
Direct labor (1.4 dlh at RM12.50/dlh)
Variable overhead (1.4 dlh at RM3.50/dlh)
17.50
4.90
Standard cost per unit
72.40
During the month of June 2019, Maju Berhad manufactured 3,750 units of product Sinar. A
total of 12,000 kg of raw materials were purchased during the month at a total cost of
RM225,000. There were no beginning inventories, but there were 2,500 kg of raw materials
remained in ending inventories at the end of June 2019.
The company employs 35 lab technicians to work on the production of Sinar. In the month of
June 2019, each technician has worked an average of 160 hours at an average wage rate of
RM12 per direct labour hour. The variable manufacturing overheads are absorbed to product
Sinar on the basis of standard direct labour hours. The actual variable overhead costs incurred
during the month is RM18,200.
Required:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5ac0ebc7-589f-4b4f-8c5a-7b2fcd522f54%2Fe1975a92-c244-4340-bdc7-46a5619031bb%2Fs5dttyj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Maju Berhad manufactures various chemicals compounds for industrial use in domestic and
overseas market. One of its compound, called Sinar, is prepared using an elaborated distilling
process and was sold in the market at the price of RM110 per unit. The company's
management is anxious to determine the efficiency of Sinar production activities for the month
of June 2019. The standard cost card for compound Sinar is given as follows:
RM
50.00
Direct materials (2.5 kg x RM20.00/kg)
Direct labor (1.4 dlh at RM12.50/dlh)
Variable overhead (1.4 dlh at RM3.50/dlh)
17.50
4.90
Standard cost per unit
72.40
During the month of June 2019, Maju Berhad manufactured 3,750 units of product Sinar. A
total of 12,000 kg of raw materials were purchased during the month at a total cost of
RM225,000. There were no beginning inventories, but there were 2,500 kg of raw materials
remained in ending inventories at the end of June 2019.
The company employs 35 lab technicians to work on the production of Sinar. In the month of
June 2019, each technician has worked an average of 160 hours at an average wage rate of
RM12 per direct labour hour. The variable manufacturing overheads are absorbed to product
Sinar on the basis of standard direct labour hours. The actual variable overhead costs incurred
during the month is RM18,200.
Required:
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College