Answer to the whole of question 6

Question 6 Seqyl Itd makes quality lunchboxes. The sales have been unsatisfactory for the last three (3) years. The new appointed financial controller who thinks a new strategy must be implemented. The suggested strategy to increase production volumes but the standard costs should remain the same. The actual results were as follows Required: Compute the following variance a) Material Price variance b) Material UsageVariance [3 Marks] c) Direct Labor Rate variance [3 Marks] d) Direct Labor efficiency variance [3 Marks] e) Assuming the standards costs do not change, determine total standard quantity of vinyl and standard direct labour costs required to manufacture 3550 lunch boxes. [3 marks]