he standards company makes a product called Pro-Standard. The standard costings for one Pro-Standard are shown below:

Materials	2kg @ 6.50 per kg	13
Labour	3 hours @ 7.00 per hour	21
Fixed overhead	4 hours @ 3 per hour	12
Variable overhead	3 hrs @ 5 per hour	15

The budgeted selling price of a Pro-Standard for the period was 80. Budgeted sales volume 200 Pro-Standards.

Actual Results

Pro-Standards sold	240	Sales Revenue	19,500
Actual Materials used	528 kgs	Cost of materials	3200
Actual Labour hours	690 hours	Actual labour cost	6,720
Actual Fixed Overhead	2560	Variable Overheads	2,800

The company uses an absorption costing system for all overheads.

Required

a) Calculate the following, stating clearly whether each is adverse or favourable: (10 marks)

Round off your answer to the nearest whole number with no sign. If the value is a negative include the minus sign e.g. -100,000

You can use the template provided here(click to download)

Type of Variance	Variance in	Favourable/Adverse
Material price variance	Answer 2	Answer 1Choose...FavourableAdverse
Material usage variance	Answer 3	Answer 1Choose...FavourableAdverse
Sales price variance	Answer 4	Answer 1Choose...FavourableAdverse
Variable overheads efficiency variance	Answer 5	Answer 1Choose...FavourableAdverse
Fixed overheads expenditure variance	Answer 6	Answer 1Choose...FavourableAdverse