QUESTION THREE $30$marks

$($i$)$ From the following particulars, compute

$($a$)$ Material Cost Variance, $(3$mks$)$

$($b$)$ Material Price Variance, $(3$mks$)$

$($c$)$ Material Usage Variance $(4$mks$)$

Standard Quantity of Raw material required $2,000$kg$.$

Estimated Cost of Raw material required sh$.8,000$

Actual quantity of Raw material consumed $2,100$kg$.$

Actual cost of Raw material consumed sh$\mathrm{.}9,450$

$($ii$)$ A product passes through three processes. The output of each process is treated as the raw material of the next process to which it is transferred and output of the third process is transferred to finished stock.

$1$st Process $($shs$)2$nd Process $(`$shs$)3$rd Process $(`$shs$)$

Materials issued $40,00020,00010,000$

Labour $6,0004,0001,000$

Manufacturing overhead $10,00010,00015,000$

$10,000$ units have been issued to the $1$st process and after processing, the output of each process is as under:

Output Normal Loss

$1$st Process $9,750$ units $2\%$

$2$nd Process $9,400$ units $5\%$

$3$rd Process $8,000$ units $10\%$

No stock of materials or of work$-$in$-$progress was left at the end. Calculate the cost of the finished articles. $(20$mks$)$