Following, is the information that relate to Mbuzi Incorporated which produces Igeda for school children for the year ended, December 2018, Actual production activity Standard Costs sheet Oz Direct materials (260 000 kgs. @ R47) Direct labour (???? hrs. @ R130) Production = 50 000 units Variable overhead rate = R35 Direct materials (6 kgs. @ R50) Variable overhead rate = R30 Fixed Overhead Rate = R28.5 (ANK-shore) & ) XA, CAH-S11] SUOMI Additional information. 1. There was 60 000 kgs. (@ R50 per kg) of raw materials in the beginning and 10 000 kgs. (@ R100 per kg) at the end of the year. II. Standard overhead rates are computed based on practical activity measured in standard direct labour hours, III. Variable and fixed overheads are apportioned based on the direct labour hours. IV. Mbuzi Inc. estimated fixed overheads to be R2 337 000, however, actual fixed overheads of R2 100 000 were incurred. V. The journal entry of Mbuzi Inc. shows direct labour flexible budget of R9 840 000, unfavourable direct labour efficiency variahce of R240 000, and unfavourable total variance of R1 060 000. SPX A 10 660 000 quo quo Required LRV LEV 820 wou 1. Describe the two types of flexible budget. (2.5) 2. Calculate the actual direct labour hours. (4) 3. Compute the materials price and usage variances, and state one possible cause for usage variance. (8.5) 4. Compute the variable overhead spending and efficiency variances. (5.5) Chir 5. Compute the fixed overhead spending and volume variances. (4.5) Chu 82 000 hrs. 820 000 96 LRY TV = 100 any 260 240 ou Following, is the information that relate to Mbuzi Incorporated which produces Igeda for school children for the year ended, December 2018, Actual production activity Standard Costs sheet Oz Direct materials (260 000 kgs. @ R47) Direct labour (???? hrs. @ R130) Production = 50 000 units Variable overhead rate = R35 Direct materials (6 kgs. @ R50) Variable overhead rate = R30 Fixed Overhead Rate = R28.5 (ANK-shore) & ) XA, CAH-S11] SUOMI Additional information. 1. There was 60 000 kgs. (@ R50 per kg) of raw materials in the beginning and 10 000 kgs. (@ R100 per kg) at the end of the year. II. Standard overhead rates are computed based on practical activity measured in standard direct labour hours, III. Variable and fixed overheads are apportioned based on the direct labour hours. IV. Mbuzi Inc. estimated fixed overheads to be R2 337 000, however, actual fixed overheads of R2 100 000 were incurred. V. The journal entry of Mbuzi Inc. shows direct labour flexible budget of R9 840 000, unfavourable direct labour efficiency variahce of R240 000, and unfavourable total variance of R1 060 000. SPX A 10 660 000 quo quo Required LRV LEV 820 wou 1. Describe the two types of flexible budget. (2.5) 2. Calculate the actual direct labour hours. (4) 3. Compute the materials price and usage variances, and state one possible cause for usage variance. (8.5) 4. Compute the variable overhead spending and efficiency variances. (5.5) Chir 5. Compute the fixed overhead spending and volume variances. (4.5) Chu 82 000 hrs. 820 000 96 LRY TV = 100 any 260 240 ou