Sitrine Enterprises Ltd is a vintage toy car manufacturing company. Plastic is an important material used in the manufacturing of toy cars. The standard price per kg of the plastic used by Sitrine is given below.

The standard time taken to manufacture one vintage toy car and the standard rate per hour of direct labour are given below.

Required

1. Calculate the total standard cost per unit of vintage toy car manufactured by Sitrine Enterprises Ltd.

2. Calculate the total standard cost per vintage toy car manufactured. Assume Sitrine Enterprises Ltd incurs variable manufacturing overhead cost in addition to the direct material cost and the direct labour cost. The variable portion of the predetermined overhead rate is £2.50 per direct labour hour.

3. In the month of June, Sitrine Enterprises Ltd purchased and used 500 kg of plastic at £2.50 per kg. Determine the materials price variance.

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Purchase price of plastic Freight charges from the supplier's warehouse Receiving and handling charges Purchase discount £2.00 0.25 0.05 0.10 The standard quantity of raw material that should be used to manufacture one vintage toy car is given below. Raw materials requirement (in kg) Allowance for waste and spoilage (in kg) Allowance for rejects (in kg) 2.45 0.20 0.10