Budget

Budget production units - 10 000

Budget sales units - 10 000

Standard cost for each unit of production -

Direct material A: 20 Kgs at R 5 per Kg

Direct material B: 10 Kgs at R 8 per Kg

Direct wages 6 hours at R 20 per hour

Fixed manufacturing costs R 100 000

Other non-manufacturing costs (fixed) R 20 000

The selling price has been budgeted at R 340 per unit

The actual results for the accounting period were as follows:

Actual production units - 12 000

Actual sales units - 8 000

Actual costs of production -

Direct material A: 226 000 Kgs at a total cost of R 1 152 600

Direct material B: 154 000 Kgs at a total cost of R 1 309 000

Closing stock of raw materials -

Direct material A: 10 000 Kgs

Direct material B: 10 000 Kgs

Direct wages 66 000 hours at a total cost of R 1 452 000

Fixed manufacturing costs R 80 000

Other non-manufacturing costs (fixed) R 22 000

The actual selling price was as per budget = R 340

You are required to analyse the following variances in Rand amounts and state whether they are favourable / unfavourable: 3.1 Material price variance (5) 3.2 Material mix variance (5) 3.3 Material yield variance (5) 3.4 Labour rate variance (5) 3.5 Labour efficiency variance (5)