Management Accounting Memo ()

MANAGEMENT ACCOUNTING
AUGUST 2021
MEMORANDUM


PREPARED BY: MTHOMBENI
0767297208

, QUESTION 1
1.1
Materials quantity variance
= (Actual quantity – Standard quantity) X Standard price
= (65000-60000) X R12
= R600000 (Unfavourable)

1.2
Labour rate variance
= (Actual rate – Standard rate) X Actual hours worked
= (R11-R10) X 29000
= R29000 (Unfavourable)


1.3
Labour efficiency variance
= (Actual time worked- Standard time allowed) X Standard rate
= (29000-30000) R10
= R10000 (Favourable)


1.4
Variable overheads efficiency variance
= (Actual hours – Standard hours allowed) X Standard rate
= (29000-30000) X R5
= R5000 (Favourable)


1.5
Variable overheads expenditure variance
= (Actual rate ÷ Standard rate) X Actual hours
= (R130500÷29000=R4,50-R5) X29000
= R14500 (Favourable)




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