Data from the October $2018$ standard cost card of product Wye, the only product of Exe

plc$,$ is as follows. TZS

Direct Material $4$ kg @ TZS $2\mathrm{.}50$ per kg $10\mathrm{.}00$

Direct labour $3$ hours @ TZS $6\mathrm{.}00$ per hour $18\mathrm{.}00$

Variable overhead $3$ hours @ TZS $4\mathrm{.}00$ per hour $12\mathrm{.}00$

Fixed Overhead $20\mathrm{.}00$

$60\mathrm{.}00$

Standard profit $15\mathrm{.}00$

Standard selling price $75\mathrm{.}00$

Budgeted fixed overhead cost for October $2018$ was TZS $25,000.$

The operating statement for October $2018,$ when raw material stock levels remained

unchanged, was as follows.

A F

TZS TZS TZS

Budgeted Profit $17,250$

Sales volume variance $750$ A

$16,500$

Selling price variance $5,500$ F

$22,000$

Cost variances:

Direct materials

Price $535$

Usage $375$

Direct labour rate $410$

Direct labour efficiency $1,200$

Variable overhead expenditure $820$

Variable overhead efficiency $800$

Fixed overhead expenditure $1,000$

Fixed overhead volume $1,000$

$3,3202,820500$ A

Actual Profit $21,500$

Required:

$($a$)$ Calculate the following.

i$.$ Actual sales units $(2$ marks$)$

ii$.$ Actual production units $(2$ marks$)$

iii. Actual selling price per unit $(2$ marks$)$

iv$.$ Actual material price per kg $(2$ marks$)$

v$.$ Actual labour hours $(2$ marks$)$

vi$.$ Actual variable overhead cost $(2$ marks$)$

vii. Actual fixed overhead cost $(2$ marks$)$

$($b$)$ Prepare a report addressed to the operations manager which explains the meaning

and possible causes of the two most significant variances which occurred in October

$20$X$9.(6$ marks$)($Total $=20$ ma