In June $2024$ a standard costing system was in place and the following information was extracted from

Matla$$s actual and budgeted information for June $2024$:

Details Off$-$grid

R

Hybrid

R

Budgeted selling price per unit R$8900$ R$10700$

Budgeted contribution per unit R$5790$ R$6390$

Actual contribution per unit R$5800$ R$6350$

Budgeted gross profit per unit R$5540$ R$6240$

Actual gross profit per unit R$5580$ R$6200$

There is no budgeted opening and closing inventory of any type.

Sales demand

Matla budgeted to sell $775$ units and $2325$ units of off$-$grid and hybrid inverters respectively. Due to the

increased competition in the hybrid$-$inverters space during June $2024,$ Matla$$s actual hybrid$-$inverters

sale quantity was $4\%$ lower than the budgeted quantity and $800$ off$-$grid inverters were sold. The actual

selling price was equal to the budgeted selling price.

Production demand

The budgeted production was equal to the sales demand for both products. However, the actual

production was $810$ off$-$grid inverters and $2230$ hybrid inverters.

Power, control and monitoring component set

Matla$$s budgeted purchase price was R$1900$ per component set and $1$ set and $1,5$ sets were required

for off$-$grid and hybrid respectively. During June $2024$ Matla purchased $4682$ sets of components at a

total cost of R$7959400$ from a new supplier and issued these components to production. However, the

quality of these component sets was not up to standard and the actual component sets used in

production were $1,1$ component sets for Off$-$grid and $1,7$ component sets for Hybrid.

Human resource informat

$($A $-$ a$)$ Calculate the sales mix variance per product type and in total for June $2024.(5)$

$($A $-$ b$)$ Calculate direct material purchase price variance for the Power, control and

monitoring component sets in total only.

$(3)$

$($A $-$ c$)$ Calculate direct material usage variance for the Power, control and monitoring

component sets per product type.

$(5)$

$($A $-$ d$)$ Based on your calculations in questions A$-$b and A$-$c above advise Matla if they

should continue purchasing from the new supplier or revert to their previous supplier

on which the budget information was based and briefly motivate your answer.

$(3)$

$($A $-$ e$)$ Calculate the direct labour efficiency variance $($work hour level$)$ for product Hybrid

only