Answer ONE question from this section and ONE further question from either Section B or Section C. 19. Greene Ltd manufactures merchandise and the standard cost is as follows: Selling price Direct materials Direct labour Variable overheads Fixed overheads Standard cost Standard profit 0.5 kg @8/kilo 2 hours @ 10/hour 2 labour hours @60p/hour 2 hours @7.40/hour Other information is as follows: 52.00 4.00 20.00 1.20 14.80 40.00 12.00 1. Budgeted output for the month of April was 5,100 units 2. Production of 4,850 units was sold for 232,800 3. Materials consumed were 2,300 kg costing 19,600 4. Labour hours were 8,000 hours costing 84,000 5. Variable overheads cost 5,200 6. Fixed overheads cost 84,600 Required: a) Calculate Material price variance; Material usage variance; Labour price variance; Labour efficiency variance; Fixed overhead variance; Sales price variance; Volume variance and prepare an operating statement for the month of April, reconciling the actual and the budgeted profit figures. (14 marks) b) Prepare a brief report for the general manager of Greene Ltd commenting on the performance of the company in April, suggesting possible causes for significant variances. (6 marks) (Total 20 marks)

Answer ONE question from this section and ONE further question from either Section B or Section C. 19. Greene Ltd manufactures merchandise and the standard cost is as follows: Other information is as follows: 1. Budgeted output for the month of April was 5,100 units 2. Production of 4,850 units was sold for 232,800 3. Materials consumed were 2,300kg costing 19,600 4. Labour hours were 8,000 hours costing 84,000 5. Variable overheads cost 5,200 6. Fixed overheads cost 84,600