Calculate the following variances and indicate whether they are favorable or unfavorable.

1. Material usage variances (for material A and material B) (8 Marks)

2. Labour rate variance (4 Marks)

Questro (Pty) Ltd Questro (Pty) Ltd manufactures security gates and makes use of a standard costing system. The following information relates to one of its products, Glide Max. The standard primary cost per unit is: R 75 90 Material A at R50 per m Material B at R90 per m Direct labour at R220 per hour Prime cost of production 110 275 Budgeted information for May 2021: Fixed overheads are budgeted at R60 per unit. Budgeted production and sales are 260 units per month. The projected selling price is R837.50 Actual figures for May 2021: R 21 037.50 22 000.00 Primary costs: Material A at R55 per m Material B at R80 per m Direct labour at R210 per hour Manufacturing overheads: Fixed 27 300.00 14 300.00 Additional information: 250 units were manufactured and sold during May. The actual selling price was R800 per unit. Source: Daniels, JC (2021)