1. Blue Emory Ltd. manufactures one product and uses a standard costing system. The following standard cost card is available for its product:

STANDARD VARIABLE COST CARD ONE UNIT OF PRODUCT
Direct materials: 2 pounds x $50 per pound	$100.00
Direct labour: 1.5 hours x $20 per hour	30.00
Variable overhead: 1.5 hours x $10 per hour	15.00
Total standard variable cost per unit	$145.00

The company records materials price variances at the time of purchase.

The following activities occurred during the month of February:

Materials purchased	3,000 pounds at $48 per pound
Materials used	2,100 pounds
Units produced	1,000 units
Direct labour	1,400 hours at $25 per hour

Calculate the following variances and indicate if they are favourable (F) or adverse (A):

I.Material price [2.5 marks]

II.Material usage [3 marks]

III.Total material [1 mark]

IV.Labour rate [2.5 marks]

V.Labour efficiency [3 marks]

VI.Total labour [1 mark]

C. Provide one (1) possible cause for each of the variances calculated in B above for:

I.Material price [1 mark]

II.Material usage [1 mark]

III.Labour rate [1 mark]

IV.Labour efficiency [1 mark]

A.Core Fitness manufactures and sells three gym equipment: Stair climbers (SC), Elliptical machines (EM), and Calf press (CP).

The following information relates to the equipment for the 2022 budget period:

	SC	EM	CP
Budgeted sales in units	1500	1200	900
Selling Price	$380	$420	$500
Variable Cost per unit	$195	$295	$230
Fixed Cost	$249,400

Required:

The management of Core Fitness have requested that you calculate the following information

I.Weighted Average Contribution Margin. [3 marks]

II.Breakeven units for EACH product [4 marks]

III.Breakeven revenue for EACH product [3 marks]

IV.No of units to be sold to achieve a target profit of $98,600 for EACH product [5 marks]

V.Number of units to be sold to achieve an after-tax profit of $59,160 for EACH product. The tax rate is 40%.