(a) A company manufactures a food product, data for which for one week have been analysed as follows:

It can be assumed that the production and sales achieved resulted in no changes of stock.
You are required, from the data given, to calculate:
(/) The actual output.
(ii) The actual profit.
(Hi) The actual price per unit of material.

(fv) The actual rate per labour hour.
(v) The amount of production overhead incurred.
(vi) The amount of production overhead absorbed.
(vii) The production overhead efficiency variance.
iyiii) The selling price variance.
(ix) The sales volume profit variance.

(b) In analysing variances, it is found frequently that an adverse variance from one standard is related directly to a favourable variance from another.
Give two examples of such a situation and comment briefly on each.

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Standard cost data: Direct materials: 10 units at .150 Direct wages: 5 hours at 4.00 Production overhead: 5 hours at 5.00 15 20 25 60