Aldrin & Charles (A&C) makes and sells a single product Ray for which the standard cost is as follows:

Particulars	Amount	Amount per unit
Direct Materials	4 kg at 12 per kg	48
Direct Labour	5 hours at 7 per hour	35

For the period under consideration, the actual results are:

Particulars	For 18,000 units
Direct Materials used for 76,000 kg at a cost of	836,000
Direct Labour cost incurred for 84,000 hours worked	604,800

Required:

1) Calculate (a) Standard Quantity for Actual Output, and (b) Actual Price of Direct Material per kg.

2) Calculate Material Price Variance and write comments on the same.

3) Calculate Material Usage Variance and write comments on the same.

4) Calculate Labour Rate Variance and write comments on the same.

5) Calculate Labour Efficiency variance and write comments on the same. Demonstrate your answers with the help of calculation and notes as a part of your answer.

(B) Explain the meaning and use of material price variances. Explain why it is preferable for the material price variance to be computed at the point of purchase rather than the point of issue of materials.