CCT 3 Hand hat Layout Calibri 12 ch Help A A A-DE-E-391 A--A- ABC Alba Alto AaB ARCHER Font QUESTION 9: Variance Analysis [14 marks) Treehouse Beds produce bunk beds for children. They sell their beds through a variety of outlets. The standard cost for producing one of their most popular beds are as follows: Manufacturing costs Standard Price Standard Quantity Standard Unit cost 50 metres 5 hours $2.50 per metre $10.00 per hour $125.00 $50.00 Direct Materials (1 x 12" treated pine) Direct Labour Manufacturing Overhead Variable Fixed Standard Manufacturing cost per unit 5 hours $5.00 per hour $25.00 $40.00 $240.00 Treehouse's master budget was based on planned production and sales of 3 000 beds. Actual results were as follows: Syracus English (Australia) to search De 12 A A A A U . Treehouse's master budget was based on planned production and sales of 3000 beds. Actual results were as follows: Produced 2500 beds Purchased and used 130 000 metres of direct materials for a total cost of $312 000 Total direct labour cost was $123 750 for 11 250 hours Variable overhead cost was $54000 - Fixed overhead was $115 000 . 2) Required 1. Calculate the following variances and label them as either favourable For unfavourable (U). Show all workings: (12 marks] Direct Materials Price Variance Direct Materials Quantity/Volume Variance Total Direct Materials Variance Direct Labour Price Variance Direct Labour Quantity/Volume/Efficiency Variance . English Australia ENG 13/10/2020 O RI re to search hp AutoSai Blo Layout References Mailing Xcut oma e Calavi A A A A TW-A--A- 21 Font 2. How can the analysis of budget variances lead to continuous Improvement organisation? [2 marks] 18 Focus 1603 words English (Australia o i *