C Get Homework Help With Chegg X 5 Microsoft Word - Revision Pack X e/content/1/Revision%20Pack%20July%202020%20Questions.pdf May Ltd produces a single product for which the following data are given: Standards per unit of product: Direct material Direct labour 4 kg at $3 per kg 2 hours at $6.40 per hour Actual details for given financial period: Output produced in units 38,000 Direct materials: purchased issued to production 180,000 kg for 154,000 kg $ 504,000 Direct labour 78,000 hours worked for 546,000 There was no work in progress at the beginning or end of the period. You are required to: (a) Calculate the following variances: (i) (ii) (iii) (iv) direct labour efficiency direct labour rate direct materials usage direct materials price, based on issues to production. (16 marks) (b) State whether in each of the following cases, the comment given and suggested as the possible reason for the variance, is consistent or inconsistent with the variance you have calculated in your answer to (a) above, supporting each of your conclusions with a brief explanatory comment. (i) Direct labour efficiency variance: the efficiency of labour was commendable (ii) Direct labour rate variance: the union negotiated wage increase was $0.60 per hour lower than expected (iii) Direct materials usage variance: material losses in production were less than had been allowed for in the standard. (iv) Direct materials price variance: the procurement manager has ignored the economic order quantity and, by obtaining bulk quantities, has purchased material at less than the standard price. (17 marks) Total 33 marks C Get Homework Help With Chegg X 5 Microsoft Word - Revision Pack X e/content/1/Revision%20Pack%20July%202020%20Questions.pdf May Ltd produces a single product for which the following data are given: Standards per unit of product: Direct material Direct labour 4 kg at $3 per kg 2 hours at $6.40 per hour Actual details for given financial period: Output produced in units 38,000 Direct materials: purchased issued to production 180,000 kg for 154,000 kg $ 504,000 Direct labour 78,000 hours worked for 546,000 There was no work in progress at the beginning or end of the period. You are required to: (a) Calculate the following variances: (i) (ii) (iii) (iv) direct labour efficiency direct labour rate direct materials usage direct materials price, based on issues to production. (16 marks) (b) State whether in each of the following cases, the comment given and suggested as the possible reason for the variance, is consistent or inconsistent with the variance you have calculated in your answer to (a) above, supporting each of your conclusions with a brief explanatory comment. (i) Direct labour efficiency variance: the efficiency of labour was commendable (ii) Direct labour rate variance: the union negotiated wage increase was $0.60 per hour lower than expected (iii) Direct materials usage variance: material losses in production were less than had been allowed for in the standard. (iv) Direct materials price variance: the procurement manager has ignored the economic order quantity and, by obtaining bulk quantities, has purchased material at less than the standard price. (17 marks) Total 33 marks