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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 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 R$6$ 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 $46000$ kg of Material K which cost R$5\mathrm{.}50$ per kg$.$

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

$5\mathrm{.}2$ REQUIRED

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

is favourable or unfavourable.

$5\mathrm{.}2\mathrm{.}1$ Variable manufacturing overheads efficiency variance $(3$ marks$)$

$5\mathrm{.}2\mathrm{.}2$ Variable manufacturing overheads expenditure variance $(2$ marks$)$

$5\mathrm{.}2\mathrm{.}3$ Fixed manufacturing overheads volume variance $(3$ marks$)$

INFORMATION

Regal Manufacturers, which produces Product M$,$ provided the following information for April $2024$:

Budgeted figures:

Variable manufacturing overheads R$10$ per labour hour

Fixed manufacturing overheads R$500000$

Labour hours $25000$

Expected production $5000$ units

Actual results:

Variable manufacturing overheads R$308000$

Fixed manufacturing overheads R$520000$

Labour hours worked $28000$

Actual production $5500$ units

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