Question 5 (15 Marks - 27 Minutes) Sit up Cc is a Windhoek based SME started by two graduates, one from NUST who holds a Bachelor's of science in Engineering and another from UNAM who holds a Bachelor's of Accounting. The corporation manufactures plastic chairs from wholly recycled material and uses a standard costing system. N$ The following is the standard variable cost per unit: 30.00 Plastic at N$ 12.00 per kg 37.50 Labour at 3 hours The following are the actual results for November: 56 000 kg Plastic purchased: 40 000 hours Labour N$13 750 Material purchase price variance (Unfavorable) N$10 000 Labour rate variance (Favorable) N$1 206 000 Sales Additional information: 1. The standard selling price is N$ 50.00 per unit. 2. 24 000 units were manufactured and sold during November. 3. There were no completed units, work in progress or material on hand at the beginning or end of November REQUIRED: In each case, discuss the possible cause of the type of variance MARKS computed: 5.1 Calculate the selling price variance. 3 5.2 Actual material purchase price per kg. 3 5.3 Calculate the material quantity variance. 3 5.4 Actual labour rate per hour. 3 5.5 Calculate labour efficiency variance. 3