Question: 3.2 REQUIRED Use the information provided below to calculate the following variances. In each case provide an interpretation of your answer. 3.2.1Direct material price variance(3

3.2 REQUIRED Use the information provided below to calculate the following variances. In each case provide an interpretation of your answer. 3.2.1Direct material price variance(3 marks) 3.2.2Direct material usage variance(3 marks) 3.2.3Direct labour rate variance(3 marks) 3.2.4Direct labour efficiency variance

INFORMATION

Standards: The following standards were set at Project Q for one unit of product Jip: Raw materials: 3 kilograms of Material Z at a price of R5 per kilogram. Direct labour: 2 labour hours at a rate of R11 per hour.Actual information for May 2020: 6 500 kg of Material Z was purchased at R5.10 per kg. 2 000 units of product Jip were produced using 6 200 kg of Material Z. The wage records showed that it took 3 900 hours at R12 per hour to produce the 2 000 units of product Jip

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