QUESTION 5 (20 Marks) 5.1 REQUIRED Use the information provided below to calculate the following variances. In each case state whether the variance is favourable or unfavourable. 5.1.1 Materials issue price variance (3 marks) 5.1.2 Materials quantity variance (3 marks) 5.1.3 Labour rate variance (3 marks) 5.1.4 Labour efficiency variance (3 marks) INFORMATION Standards: The following standards were set by Bravo Manufacturers for one unit of product Stim: Raw materials: 4 kilograms of Material K at a price of R6 per kilogram. Direct labour: 3 labour hours at a rate of R5 per hour. Actual information for May 2020: 5 000 units of product Stim were produced using 21 000 kg of Material K which cost R5.80 per kg. It took 14 500 labour hours at R5.50 per hour to produce the 5 000 units of product Stim. 5.2 REQUIRED Use the information provided below to calculate the following overheads variances. In each case state whether the variance is favourable or unfavourable. 5.2.1 Variable manufacturing overheads expenditure variance (3 marks) 5.2.2 Fixed manufacturing overheads volume variance (3 marks) 5.2.3 Fixed manufacturing overheads expenditure variance (2 marks) INFORMATION Imballito Manufacturers, that produces Product J, provided the following information for May 2020 Budgeted figures: Variable manufacturing overheads R6 per labour hour Fixed manufacturing overheads R384 000 Labour hours 32 000 Expected production 8 000 units Actual results: Variable manufacturing overheads Fixed manufacturing overheads Labour hours worked Actual production R199 520 R399 040 34 400 8 200 units