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19. Spacey plc is in the manufacturing industry and it manufactures and sells a product known as GMT. The manager of the department that produces
19. Spacey plc is in the manufacturing industry and it manufactures and sells a product known as GMT. The manager of the department that produces the products crealed a monthly budget for the product at the beginning of the year, based on 9.000 units of the product being produced and sold. However in April, only 8,500 units were actually produced and sold and his actual monthly budget values were as follows: Required a. Calculate the following: Material price variance; Material usage variance; Labour price variance; Labour efficiency variance; Fixed overhead variance; Sales price variance; Volume variance (44 marlis) b. Discuss the possible reasons relating to the variances you have calculated. (6. mafhs) (Total 20 marks)
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