**IM CURIOUS ON THE ACTUAL DIRECT MATERIALS USED GIVEN IN THE QUESTION, BECAUSE THEY DID NOT GIVE THE DIRECT MATERIALS PURCHASED AMOUNT.

AND BECAUSE I LEARNT THAT FOR THE DIRECT MATERIAL PRICE VARIANCE, WE WILL THE ACTUAL QTY OF DIRECT MATERIALS PURCHASED WHILE THE DIRECT MATERIAL USAGE VARIANCE, WE WILL BASED IT ON ACTUAL QTY OF DIRECT MATERIALS USED.

BUT IN THIS QUESTION, SINCE THEY ONLY GIVE DM USED, SO DO I JUST ASSUME THAT DM PURCHASED IS ALSO THE SAME AMOUNT?

THANK YOU IN ADVANCE SIR/MADAM :)

The following information relates to Product X72: (30 MINS) $ 12 Standard Cost Card Product: Plastic Container X72 Direct material 4 kilograms @ $3 per kilogram Direct labour 5 hours @ $4 per hour Variable overhead 5 hours @ $1 per hour Fixed overhead 5 hours @ $3 per hour Standard Production cost 20 5 15 52 Assume that in Month 1, Company A produced and sold 9,500 Containers and that the following cost information applied: Direct Material used: 37,000 kilograms at a total cost of $119,880 Direct Labour hours paid for: Variable overhead incurred: Fixed overhead incurred: 49,200 hours at a total cost of $200,736 $47,000 $145,000 Fixed overheads are budgeted at $150,000 per month. (a) Calculate the following variances: material price and usage; labour rate and efficiency; variable overhead expenditure and efficiency; fixed overhead expenditure and volume; fixed overhead efficiency and capacity (b) Provide two possible reasons for each of the material and labour variances