FOUR [20] A Ltd operates a system of standard costs. The following information is available: Actuals R Materials consumed (3 600 units at R52,50 per unit) 189 000 Direct wages 22 100 Variable expenses 62 000 Fixed expenses 188 000 Output during the period was 3 500 units of finished product. For the above period, the standard production capacity was 4 800 units. The break up of standard costs per unit were: R Materials (one unit at R50 per unit) 50 Direct wages 6 Variable expenses 20 Fixed exenses 40 116 The standard wages per unit is based on 9 600 hours for the above at a rate of R3 per hour. 6 400 hours were actually worked during the period under review and in addition, wages for 400 hours was paid compensate for idle time due to a breakdown of a machine. This increased the overall wage rate to R3,25 per hour. Required: Please calculate the following variances: 4.1 Material price variance (3) 4.2 Material usage variance (3) 4.3 Labour rate variance (3) 4.4 Labour efficiency variance (3) 4.5 Variable expenses variance (2) 4.6 Fixed overhead expenditure variance (2) Denote a favourable variance with an '(F)' and un unfavourable variance with a '(U)'. 4.7 What possible measures can A Ltd put in place to ensure that its overall wage rate is reduced to a minimum by machine breakdowns in future? (4) END OF QUESTIONS