2.2 REQUIRED

Study the information provided below and calculate the following variances for September 2017:

2.2.1 Raw materials usage variance (4)

2.2.2 Variable overheads efficiency variance (4)

2.2.3 Direct labour rate variance (4)

2.2.4 Direct labour efficiency variance (4)

N.B. Your answers must indicate whether the variance is favourable or unfavourable

INFORMATION

Cile Ltd uses the standard costing system. The standards per unit for manufacturing Product Tutu are as follows:

Material	4 kilograms at R6 per kilogram
Labour	5 hours at R60 per hour
Variable overheads	R20 per labour hour
Normal production	25 000 units per month

Actual information for the month September 2017:

Material	82 000 kilograms at R5.80 per kilogram
Labour	102 000 hours at R65 per hour
Variable overheads	R22 per labour hour
Production	20 000 units