Cascade Limited produces metal eontainers for the pharmaceutical industry. The eompany uses standard costing and the following standards relate to the containers;

Material: 6 kilos of Material A at £5-00 per kilo.

Direct labour: 2 hours at a rate of £4-50 per hour.

Variable overheads are absorbed at a rate of £7-50 per labour hour.

Fixed overheads are absorbed at a rate of £12-00 per labour hour and are budgeted at £15,000 per month.

During May 2000 the company produced and sold 600 containers. The actual costs and data relating to produetion in May were as follows:

Material: 3,550 kilos at a total cost of £18,290 Direct labour: 1,320 hours were worked and paid for at a total cost of £5,610 Variable overhead incurred was £9,400 Fixed overhead incurred was £15,610 Required:

(a) Calculate the standard cost of a single metal eontainer. (5 marks)

(b) Caleulate the following cost variances for May 2000:
(i) Material price and usage;
(ii) Labour rate and effieieney;
(iii) Variable overhead expenditure (or rate) and effieieney;
(iv) Fixed overhead expenditure and volume