ASSIGNMENT 3 ON ACC 415-MANAGEMENT ACCOUNTING 1 FOR PART TIME

Foyegbe Nigeria Limited Operates a standard absorption costing system to control the manufacturing cost of single product. The following standards have been set.

                                                         N/Unit

Direct Materials 2kg @ N6/kg          12

Direct Labour 1 hour @ N7/hr           7

Variable overhead 1 hour@ N9/hr     9

Total production cost                         28

The fixed overhead standard cost per unit is based on a budgeted monthly production of 4,000 units actual results for most recent month were:

Production                               4,300 units

Direct material cost                N56,000 for 9,000kg

Direct labour cost                   N32,800 for 4,600hrs

Variable overhead                  N35,000

Only 4,000 hrs were worked

No material inventory held

Required: Calculate all relevant variances.

                                                                BEST OF LUCK!

                               Patriot Odunaro B.J (08038454008)
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