1. Folan Ltd operates a standard marginal costing system for the single product it manufactures.

The standard selling price of this product is 132 per unit

Production and sales of 6000 units are budgeted for March 2021.

The variable manufacturing cost standards set for March 2021 are as follows:

per unit

Direct material (2.5 kilos X16.90 per kilo) 42.25

Direct labor (1.25 hours X 18.80 per hour) 23.50

Variable production overhead (1.25 direct labor hours X 13.40 per hour) 16.75

The variable production overheads are absorbed on the basis of direct labor hours. Actual results for March 2021 were as follows:

Production 6,380 units

Sales (5,640 units) 810,750

Direct material, purchased and used (14,730 kilos) 279,870

Direct labor (8,535 hours) 153,630

Variable production overhead 89,740

Opening and closing stocks of finished goods are valued at the standard variable manufacturing cost per unit for March 2021.

REQUIRED

1. Calculate the actual contribution for March 2021.
2. Calculate the following variances for Marc
3. Sales Price
4. Sales Volume Contribution
5. Direct Materials Price
6. Direct Materials Usage
7. Direct Labor Rate
8. Direct Labor Efficiency