QUESTION 1 (21 MARKS) HCM Factory is a manufacturing company that produces tables for various universities'...

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QUESTION 1 (21 MARKS) HCM Factory is a manufacturing company that produces tables for various universities' use. The standard costs information is as follows: Direct materials required: 8 kg per unit; $4.00 per kg Direct labour required: 2 hours per unit; $12.00 per hour HCM Factory's estimated variable overhead rate per hour is $3.50. Variable overhead is allocated using direct labour hours. Actual results for the last year were: Total actual output for the year was 155,000 units. Direct materials purchased and used for this purpose was 1,209,000 kg at a total cost of $5,198,700. Direct labour of 325,500 hours was worked at total wages of $4,101,300. Total variable overhead incurred during the year was $1,009,050 You are required: a. To calculate direct material price variance, quantity variance and total direct material variance. (5 marks) b. To calculate direct labour rate variance, efficiency variance and total direct labour variance. (5 marks) c. To calculate variable overhead spending variance, efficiency variance and total variable overhead variance. (5 marks) d. To comment on the direct material and direct labour variance.. (6 marks) QUESTION 1 (21 MARKS) HCM Factory is a manufacturing company that produces tables for various universities' use. The standard costs information is as follows: Direct materials required: 8 kg per unit; $4.00 per kg Direct labour required: 2 hours per unit; $12.00 per hour HCM Factory's estimated variable overhead rate per hour is $3.50. Variable overhead is allocated using direct labour hours. Actual results for the last year were: Total actual output for the year was 155,000 units. Direct materials purchased and used for this purpose was 1,209,000 kg at a total cost of $5,198,700. Direct labour of 325,500 hours was worked at total wages of $4,101,300. Total variable overhead incurred during the year was $1,009,050 You are required: a. To calculate direct material price variance, quantity variance and total direct material variance. (5 marks) b. To calculate direct labour rate variance, efficiency variance and total direct labour variance. (5 marks) c. To calculate variable overhead spending variance, efficiency variance and total variable overhead variance. (5 marks) d. To comment on the direct material and direct labour variance.. (6 marks)