Answer the Q1 and Q2

1. YRN Signs Ltd budgets to produce and sell 8,500 number plates per quarter. It operates a system of standard costing and exible budgeting and its standard direct cost per number plate for materials is: :9 Materials (15 square metres at 2 per square 30 metre) For the rst quarter of the year 7,500 number plates were produced and sold and the actual costs incurred were: Materials (120,000 square metres 180,000 ) Required: a) Calculate the total material cost variance, the material price variance and the material usage variance for the quarter. b) Discuss possible reasons for the variances you have calculated. 2. XDD manufactures a machine part which has the following standard costs for direct labour: 5 direct labour hours at $6 per hour = $30 per unit In July production was 10,000 units and the actual labour hours worked were 50,200 hours costing $307,200. Required a) Calculate the total labour cost variance, the labour rate variance and the labour efficiency variance. b) Discuss possible reasons for the variances you have calculated