Aiten Limited manufactures one type of product and uses a standard costing system.

The following is the standard variable cost per unit:

		R
Material @ R8,00 per kg		20.00
Labour @ 1.5 hrs Variable overheads		22.50
- varying with hours worked: 1.5 hrs @ R6.00 per hour 9.00

varying with production 7.00

Budgeted sales 11 700 units

The following are the actual results:

Materials purchased 32 000 kg R262 400

Labour Rate per hour R16.00 R304 000

Variable overheads

varying with hours worked R108 300

varying with production R 78 000

Sales R624 000

Additional information:

The budgeted selling price is R50.00 per unit.

12 000 units were manufactured and sold.

Calculate the following variances and state whether they are favourable or unfavourable:

1.1 Material price variance.

1.2 Material quantity variance.

1.3 Labour rate variance.

1.4 Labour efficiency variance.

1.5 Selling price variance