QUESTION $5$

$(20$ MARKS$)$

$5\mathrm{.}1$

REQUIRED

Use the information provided below to calculate the following variances. In each case state whether the variance is favourable or unfavourable.

$5\mathrm{.}1\mathrm{.}1$ Materials issue price variance

$(3$ marks$)$

$5\mathrm{.}1\mathrm{.}2$ Materials quantity variance

$(3$ marks$)$

$5\mathrm{.}1\mathrm{.}3$ Labour rate variance

$(3$ marks$)$

$5\mathrm{.}1\mathrm{.}4$ Labour efficiency variance.

$(3$ marks$)$

INFORMATION

$\backslash$table$[[$Standards:$],[$The following standards were set by Asus Manufacturers for each unit of product Zap:$],[$Raw materials: $3$ kilograms of Material K at a price of R$5$ per kilogram.$],[$Direct labour: $2$ hours at a rate of R$100$ per hour.$],[],[$Actual information for May $2024$:$],[\backslash$table$[[10000$ kg of Material K was purchased for R$53000.3000],[$kg of Material K$.]]],[\backslash$table$[[$The wage records showed that it took $6200],[$Zap$.$ hours at a cost of R$607600]]]]$

$5\mathrm{.}2$

REQUIRED

Use the information provided below to calculate the following manufacturing overheads variances. In each case state whether the variance is favourable or unfavourable.

$5\mathrm{.}2\mathrm{.}1$ Variable overheads expenditure variance

$(3$ marks$)$

$5\mathrm{.}2\mathrm{.}2$ Fixed overheads volume variance

$(3$ marks$)$

$5\mathrm{.}2\mathrm{.}3$ Variable overheads efficiency variance.

$(2$ marks$)$

INFORMATION

Converse Manufacturers provided the following information for May $2024$ for the only product that it manufactures:

$\backslash$table$[[$Budgeted figures:$],[$Variable manufacturing overheads,R$5$ per labour hour$],[$Fixed manufacturing overheads,R$288000],[$Labour hours,$24000],[$Expected production,$3000$ units$]]$

$\backslash$table$[[$Actual results:$],[$Variable manufacturing overheads $($based on labour hours$),$R$114810],[$Fixed manufacturing overheads,R$299280],[$Labour hours worked,$25800],[$Actual production,$3200$ units$]]$