Barthinilie blent had the fotowng atandard coet sneet\ Droct babour (1:4 hir che Rios) Totin\ Durnp the year, Bartlesvile plant experienced the following advity reiative 10 the producton st the chemical\ Units produced 26000\ A total of

130000kg

of direct materiais was purctused at R37 per kg\ There were

10000kg

of difect materiais in beginning mentory (cavrind an R40 per va). There was no ending inventory of direct materials\ The plant used 36600 direct labour bours at a total cost of Ra 923750\ Actual foxed overhead totaied R950000.\ Actual variable overhead tataled R2 100000 .\ Normal activity is 22500 units per annum. Standard overhead rates are calculated based on normak actwity moescared in standard direct labour hours. Bartiesvilk plam uses a standard absorption costing system.\ Required:\ 21 Calculate the direct materiais price and usage virisivex.\ 2.2. Calculate the direct labour rate and efficiency yozance:\ 2.3 Caiculate the overhead variances.\ 24 Ciose off all variances to the Cost of Gooks sold acograt.\

2*5

Based on the direct materials variances and the direct labour variance calculate abo recommend that Bartlesvilie plant continue to use this cheaper direct materia? Why?\ you\ (3)

- Units produced 26000 w was no ending inventory of direct materials * The plant used 36600 direct labour hours at a total cost of Ra 923750 - Actual foxed overhead totaled R950000. - Actual wariable overhead tataled R2 100000 . Normal activity is 22500 units per annumi Standard cverhead rates are calculated based on normak actwity meabcied in standard direct labour hours. Barliesvilki plant uses a standard absorption costing system Required: 21 Calculate the direct materiais price and usege varisyisen. 2.2 A Calculate the direct labour rate and efficiency vanances 2.3 Calculate the overhead variances. 4 Ciose off all variances to Me Cost of Goods Soid acoount. 5. Based on the direct materials variances and the direct labour variance calculate above, would you recommend that Gartlesvilie plant continue to use this cheaper direct matenar? Why