il redONE 22:55 80% X REVISION Qs (Extra... QUESTION 5 Standard Direct Material 5 metre @ $6/metre Actual (for 1,000 units) 5,000 metre @ $25,000 600 hours @ $6,000 $3.000 $2,500 Direct Labour 0.5 hours @ $10/hour Variable OH 1 hour @ $2/hour Fixed OH 1 hour @ $3/hour Normal production capacity: 500 units @ 500 hours Ideal production capacity: 1,500 units @ 1,500 hours Selling Price: $50 Selling and Administrative Expenses: $1,500 Required: a) Determine the following variances: (1) MPV (ii) MOV (iii) TMV (iv) LPV (v) LOV (vi) TLV (vii) OHCV (viii) OHVV (ix) TOHV b) Journalise the following variances using the standard cost accounting system: O) MPV (11) MOV (II) LPV (iv) LOV (v) TOHV c) Prepare an income statement using the standard cost accounting system, d) Provide FOUR (4) possible reasons for the variances determined in b). B, C, D