Kennys Productions Ltd operates a standard costing system, which provides the company with cost information that is vital to its budget preparation each period. The company produces and sells a single product. At the end of October 2020, the following information was extracted from the companys records:

Standard cost per unit

$

Direct raw materials 2 litres at $150 each 300

Direct labour 1.5 hours at $140 each 210

Total 510

Actual results for the month:

Opening stock direct raw materials 8,000 litres

Production 16,600 units

Direct raw materials purchased was 30,000 litres valued at $4,650,000

Closing stock of direct raw materials 5,000 litres

Direct labour 24,850 hours at a cost of $3,528,700.

Required:

Calculate the direct raw materials price variance. (4 marks)

Calculate the direct raw material usage variance for the month. (5 marks)

Calculate the direct raw material total variance. (2 marks)

Calculate the direct labour rate variance. (5 marks)

Calculate the direct labour efficiency variance. (5 marks)

Calculate the direct labour total variance. (2 marks)

List two (2) objectives of Standard Costing. (2 marks)