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a) The Vienna's Boiler Service company is trying to establish the standard labour cost of servicing a typical industrial boiler. The following data have been

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a) The Vienna's Boiler Service company is trying to establish the standard labour cost of servicing a typical industrial boiler. The following data have been collected from studies conducted over the past rine years. Requirement: 1) If it took 4.4 hours to service a boller at the standard hourly rate, what was the direct labour efficiency variance? [4 Marks] Page 4 of 7 ACC7003MAY2022 i) During the month of May, Vienna's Boiler serviced 90 boilers. The average time spent on each boler was 4.4 hours. The average cost per hour was 554.75 per hour. Vienra's had to hire some less experienced part time staft in order to handle the demand. Calculate the total direct labour variance along with rate and efficiency variance and explain what might have caused the variances. [6 Marks] b) Tasty Treats of Tyrone makes cookies using three basic ingredients. The standard cost card for ane batch of cookies for the morth of April was as follows: The budget for production and sales in April was 170,000 batches. Actual production and sales were 190,000 batches. The actual ingredients used were as follows: Requirement: Calculate the total material mix variance and the total material yield variance for April and explain the variances. [10 Marks] Total 20 Marks

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