QUESTION $5$

$(20$ Marks$)$

$5\mathrm{.}1$ REQUIRED

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

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

$(3$ marks$)$

$5\mathrm{.}1\mathrm{.}2$ Total material variance $($without using the material quantity and material rate variances$)$

$(3$ marks$)$

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

$(3$ marks$)$

$5\mathrm{.}1\mathrm{.}4$ Total labour variance $($without using the labour efficiency and labour rate variances$)$

$(3$ marks$)$

INFORMATION

Standards:

The following standards were set by Kismet Manufacturers for each unit of product Tazz:

Raw materials: $5$ kilograms of Material $K$ at a price of $R6$ per kilogram.

Direct labour: $4$ labour hours at a rate of R$50$ per hour.

The normal monthly production is $10000$ units.

Actual information for March $2024$:

$9000$ units of product Tazz were produced using $46000kg$ of Material $K$ which cost R$5\mathrm{.}50$ per $kg.$

t took $35000$ labour hours at a total cost of R$1820000$ to produce the $9000$ units of product Tazz.