During the month, 6,500 kg of raw materials were purchased at shs.3.80 per kilo and all of it was used to produce 2000 units of finished products.Also, 4,500 hours of direct labour time were used at a total cost of shs.64, 350.

REQUIRED

Calculate:

1. Direct Materials price variance(3 marks)
2. Direct Materials usage variance(3 marks)
3. Total Materials Variance( 3 marks)
4. Direct Labour Rate Variance(3 marks)
5. Direct Labour Efficiency Variances(4 marks)

Total Labour Variance