cacluate

direct material price variance

direct material quantity variance

direct labour rate variance

direct labour efficiency variance

variable overhead spending variance

variable overhead efficiency variance

fixed overhead budget variance

fixed overhead volume variance

Apple Clothing Ltd is a manufacturing firm producing clothing items. The company is using a standard costing system for planning and controlling purposes. The standard cost card of the product, SAGA, reveals the following information: Direct materials: 4 metres at $4.00 Direct labour: 1.5 hours at $10.00 Variable overhead: 1.5 hours at $3.00 Fixed overhead: 1.5 hours at $7.00 Standard cost per unit $16.00 15.00 4.50 10.50 $46.00 The company manufactured and sold 18.000 units of product during the last year. A total of 70.200 metres of material was purchased during the year at the cost of $4.20 per metre. All of this material was used to manufacture all the outputs. The company records showed no beginning or ending inventories for the year. From the payroll records, it indicated payments of actual labour cost of $9.75 per hour for a total of 29,250 direct labour-hours worked. Overhead costs were applied to products on the basis of direct labour hours. The amount of actual variable overhead costs incurred were $90,000. For fixed overheads, the planned activity level (direct labour hours) was 22.500 hours. Budgeted fixed overhead costs as shown on the flexible budget were $157.500, while actual fixed overhead costs incurred were SI56 000