calculate overhead controllable variance and indicate whether the variance is favorable or unfavorable

2. A 1 Normal Heading 2 T No Spac... 1 Table Pa... Heading 1 Paragraph Styles 2. 4 5 Etxed overhead: Variable overhead: 3 $63 000 $45 000 Required: (a) Calculate Direct materials price variance and indicate whether the variance is favourable or unfavourable. (2 marks) (b) Calculate Direct materials quantity variance and indicate whether the variance is favourable or unfavourable. (2 marks) (c) Calculate Direct labour price variance and indicate whether the variance is favourable or unfavourable. (2 marks) (d) Calculate Direct labour quantity variance and indicate whether the variance is favourable or unfavourable. (2 marks) (e) Calculate Overhead controllable variance and indicate whether the variance is favourable or unfavourable. (2 marks) (f) Calculate Overhead volume variance and indicate whether the variance is favourable or unfavourable. (2 marks) (9) How does a manager know when to investigate and when to ignore a variance? Explain your answer. (3 marks) Suggested Answer for Question 3: OR BUACC5933. Settings x]] Book1 - Exc... x] BUJACC 5933... BUACC5933... DULL US ON REFERENCES MAILINGS RIVIW VIEW Aa E15 About About RX ABOOD Aabba Abbcco AaBlaBbce A.2.A.3. 1 Normal Heading 2 1 No Spac... ble a Heading 1 Heading 3 Title Subtitle Paragraph Styles Font "Morry Ltd manufactures a single product called S1 Page 6 of 11 HUACC 933 Cost and Management Accounting Semester 1 2070 It uses a standard cost accounting system. The company applies Overhead on the basis of direct labour hours. The standard cost per unit of S1 is as follows: Direct materials 4 kilograms at $4 80 per kilogram Direct labour 1.5 hours at $25 per hour Manufacturing overhead 1.5 hours at $8 per hour In May 2020, it produced 7 000 units of S1 when its normal capacity was 12 000 direct labour hours Al normal capacity, the budgeted fixed overhead costs were $72 000 and budgeted variable overhead was $24 000 The actualiteedicion Zone BRES D ENGLISH AUSTRALIA BUCC903. Settings Book Exc. BACCARE. BUCC ENG U DELL F6 F7 F8 F9 F10 F11 F12 Priser 1 Insert Delete Pous $ 8 N Backspace 5 6 8 R T Y I F J L Ente