$2.$ Tropical ltd produces powder soap for households use. The standard direct costs per carton containing $20$ packets of one kg each is as follows:

Raw materials

$15$ kgs of tallons @ sh $10$ per kg

$10$ kgs of caustic soda @ sh $16$ per kg

Labour $20$ hours @ $5$ per hour

Packed materials

$20$ packets @ $50$ cents each

$1$ carton @ sh $5$ each

The monthly budget is per $1,000$ cartons. The overhead expenses which are all Fixed are budgeted at sh $40,000$ and selling price per $1$kg packet of soap is sh

$25.$ the following details relate to October $2007$ when $1,200$ cartons of soap

Were produced and sold

Ksh

Sales $1,200$ cartons $552,000$

Raw materials:

Tallow $10,800$ kgs $129,600$

Caustic soda $13200$ kgs $198,000$

Labour; $26,400$ hours $145,200$

Fixed overhead expenditure $42,000$

REQUIRED: calculate

a$)$ Price and usage variances each raw materials. $(8$ Marks$)$

b$)$ Labour rate and efficiency variances. $(3$ Marks$)$

c$)$ Sales price and volume variances. $(5$ Marks$)$

d$)$ Overhead expenditure variances. $(2$ Marks$)$