Growmore is a chemical fertilizer manufactured by the Company XYZ Ltd. XYZ control costs using an old style standard costing approach and has developed the following criteria for materials, labor,and overhead associated with producing one pack of Growmore. Direct materials : $18.00 (1.5kg at a cost of $12 per kg Direct labour 24 per hour: $14.4 (0.6 hour at $24 per hour) Variable manufacturing overhead: 0.6hours at a rate of $5.00 = $3.00

The firm manufactured and sold 3,000 boxes of fertilizer in November 2021. At a cost of $11.50 per kilogram, 8,000 kilograms of direct materials were produced, 6,000kgs of this were utilized in November.. At the start of November, there was no inventory, During the month, 1699hours of direct labour were documented at a cost of $40,000. November's Variable manufacturing overhead expenses were $7,200.

YOU ARE ASKED TO ASSESS I. Material price variance and materials quantity variance (4marks) ii. Labour rate variance and Labour efficiency variance (3marks) iii. Variable overhead spending variance overhead efficiency variance (3marks)