Marcus Ltd produces outdoor furniture for the hospitality industry. The furniture is made of moulded plastic....

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Marcus Ltd produces outdoor furniture for the hospitality industry. The furniture is made of moulded plastic. This cost card was developed for his best seller, the Negril Lounger. Direct materials: Direct labour: 3kg 0.25 hours X $125 per kg $135 per hr Variable overhead 0.25 hours x x $78 per hr Fixed overhead 0.25 hours X $190 per hr The following information relates to the month of November: Units produced and sold Materials purchased Beginning inventory of materials Ending inventory of materials Direct labour Variable overhead incurred Fixed overhead incurred 5.000 19 500kg ($2 496 000) Okg 5 100 kg 1 300 hrs at $134 per hr $98 750 231 250 Budgeted production for the period was 4 500 units Required: a) Calculate the following variances, stating clearly whether they are favourable (F) or unfavourable (U): i. The direct materials price variance [2 marks] ii. The direct materials usage variance [2 marks] iii. The direct materials cost variance [2 marks] iv. The direct labour rate variance [2 marks] V. The direct labour efficiency variance [2 marks] vi. Labour cost variance [2 marks] Marcus Ltd produces outdoor furniture for the hospitality industry. The furniture is made of moulded plastic. This cost card was developed for his best seller, the Negril Lounger. Direct materials: Direct labour: 3kg 0.25 hours X $125 per kg $135 per hr Variable overhead 0.25 hours x x $78 per hr Fixed overhead 0.25 hours X $190 per hr The following information relates to the month of November: Units produced and sold Materials purchased Beginning inventory of materials Ending inventory of materials Direct labour Variable overhead incurred Fixed overhead incurred 5.000 19 500kg ($2 496 000) Okg 5 100 kg 1 300 hrs at $134 per hr $98 750 231 250 Budgeted production for the period was 4 500 units Required: a) Calculate the following variances, stating clearly whether they are favourable (F) or unfavourable (U): i. The direct materials price variance [2 marks] ii. The direct materials usage variance [2 marks] iii. The direct materials cost variance [2 marks] iv. The direct labour rate variance [2 marks] V. The direct labour efficiency variance [2 marks] vi. Labour cost variance [2 marks]