B Final Exam (50%) - FINC1001( Bb Take Test: Begin Final Exam - F C O 8 https://vuws.westernsydney.edu.au/webapps/assessment/take/take.jsp?course_assessment_id=_142057_1&course_id=_40232 Remaining Time: 2 hours, 02 minutes, 58 seconds. Question Completion Status: The Car Company manufactures auto accessories. One of the company's products is a set of seat covers. The company uses a standard cost system for all of its products. According to the standards that have been set for the seat covers, the factory should work 3,040 hours each month to produce 1,900 sets of covers. At standard, each set of covers should require 5 metres of material. The standard costs associated with this level of production are: Total Per Set of Covers Direct materials $43,700 $23.00 Direct labour $56,240 29.60 Variable manufacturing overhead $8,360 4.40 (based on direct labour-hours) Total per set of covers $57.00 During August, the factory worked only 3,000 direct labour-hours and produced 2,000 sets of covers. All of the materials purchased during the month were used in production. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (12,000 metres) $48,000 $24.00 Direct labour $54,000 27.00 ariable manufacturing overhead $8,400 4.20 total per set of covers $55.20 Whilst not visible in the information above, the company is aware of both the actual and standard cost per unit of input. Required: Calculate the following variances for August. Show workings. 1. The materials price and quantity variances. (3 marks) 2. The labour rate and efficiency variances. (3 marks) 3. The variable overhead rate and efficiency variances. What relationship can you see between this efficiency variance and the labour efficiency variance? (4 marks) or the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B S Paragraph V Open Sans. S. V 10p A V