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QUESTION THREE $[25]\text{ }\mathrm{}$

YDK Ltd manufactures a single product and uses a standard variable costing system to record all transactions. You have been given the following budget information for the accounting period under review: Budget production units $-\mathrm{ }10\mathrm{ }000\text{ }\mathrm{}$Budget sales units $-\mathrm{ }10\mathrm{ }000\text{ }\mathrm{}$Standard cost for each unit of production $-\text{ }\mathrm{}$Direct material A: $20\text{ }\mathrm{}$Kgs at R $5\text{ }\mathrm{}$per Kg B: $10\text{ }\mathrm{}$Kgs at R $8\text{ }\mathrm{}$per Kg Direct wages $6\text{ }\mathrm{}$hours at R $20\text{ }\mathrm{}$per hour Fixed manufacturing costs R $100\mathrm{ }000\text{ }\mathrm{}$Other non$-$manufacturing costs $($fixed$)\text{ }\mathrm{}$R $20\mathrm{ }000\text{ }\mathrm{}$The selling price has been budgeted at R $340\text{ }\mathrm{}$per unit The actual results for the accounting period were as follows: Actual production units $-\mathrm{ }12\mathrm{ }000\text{ }\mathrm{}$Actual sales units $-\mathrm{ }8\mathrm{ }000\text{ }\mathrm{}$Actual costs of production $-\text{ }\mathrm{}$Direct material A: $226\mathrm{ }000\text{ }\mathrm{}$Kgs at a total cost of R $1\mathrm{ }152\mathrm{ }600\text{ }\mathrm{}$B: $154\mathrm{ }000\text{ }\mathrm{}$Kgs at a total cost of R $1\mathrm{ }309\mathrm{ }000\text{ }\mathrm{}$Closing stock of raw materials $-\text{ }\mathrm{}$Direct material A: $10\mathrm{ }000\text{ }\mathrm{}$Kgs B: $10\mathrm{ }000\text{ }\mathrm{}$Kgs $4\text{ }\mathrm{}$Direct wages $66\mathrm{ }000\text{ }\mathrm{}$hours at a total cost of R $1\mathrm{ }452\mathrm{ }000\text{ }\mathrm{}$Fixed manufacturing costs R $80\mathrm{ }000\text{ }\mathrm{}$Other non$-$manufacturing costs $($fixed$)\text{ }\mathrm{}$R $22\mathrm{ }000\text{ }\mathrm{}$The actual selling price was as per budget You are required to analyse the following variances in Rand amounts and state whether they are favourable $/\text{ }\mathrm{}$unfavourable:

Questions $3$

$3\mathrm{.}1\text{ }\mathrm{}$Material price variance $(5)\text{ }\mathrm{}$

$3\mathrm{.}2\text{ }\mathrm{}$Material mix variance $(5)\text{ }\mathrm{}$

$3\mathrm{.}3\text{ }\mathrm{}$Material yield variance $(5)\text{ }\mathrm{}$

$3\mathrm{.}4\text{ }\mathrm{}$Labour rate variance $(5)$

$\mathrm{}3\mathrm{.}5\text{ }\mathrm{}$Labour efficiency variance $(5)$

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