. As one of the Botho students, who has done standard costing as one of the topics in the Cost Accounting module, you have been invited to come and table a discussion on possible causes of variances at the inter house links programme scheduled in a weeks' time. You are therefore requested to bring a blue print highlighting the following causes of different variances.

Required: For each of the variances listed below, state any two possible causes of each variance.

Material price, material usage, labour rate and labour efficiency variances

b) Muchson Ltd manufactures just a single product which it sells to its various customers for P16 per each unit. The total fixed costs totaled P230 400 per month and their product registered a contribution to the sales ratio of about 40%. If the company manages to get total actual sales of P672 000, calculate Muchson Ltd's margin of safety, in units.