Lourlen Lid operates a standard costing system. Its budget for the month was $ $ Sales (22 000 units at $21) 462 000 Direct materials (28 600 kilos at $2) 57 200 Direct labour (48 400 hours at $6) 290 400 347 600 Contribution 114 400 $ $ 445 120 Actual results for the month were Sales (21 400 units at $20.80) Direct materials (28 400 kilos at $2.05) Direct labour (47 200 hours at $5.90) Contribution 58 220 278 480 336 700 108 420 REQUIRED: (a) Calculate the following variances () sales volume [2] (II) sales price [2] (til) total sales [2] (iv) direct materials usage [2] (v) direct materials price [2] (vl) total direct materials [2] (VII) labour officiency [2] (vilt) labour rate 12] (ix)total labour 12] (b) A company operates a standard cosling system. Slate with reasons what offects might be observed It: (6) raw material is of a higher quality than usual. [6] (II) direct labour has a lower skill level than usual. [6] 12) REQUIRED (c) State which costing method is best suited to the following situations: (1) a company wishes to calculato a break even point. (II) a customer requires a quote for the manufacture of a large, one-off item. 12] (II) goods are produced in a sequence of continuous manufacturing operations. 12) (iv) production costs need to contain an element of the costs of support or service departments. (2) (v) a price is needed for one item out of a set of identical items. [2] Total: 40) Lourlen Lid operates a standard costing system. Its budget for the month was $ $ Sales (22 000 units at $21) 462 000 Direct materials (28 600 kilos at $2) 57 200 Direct labour (48 400 hours at $6) 290 400 347 600 Contribution 114 400 $ $ 445 120 Actual results for the month were Sales (21 400 units at $20.80) Direct materials (28 400 kilos at $2.05) Direct labour (47 200 hours at $5.90) Contribution 58 220 278 480 336 700 108 420 REQUIRED: (a) Calculate the following variances () sales volume [2] (II) sales price [2] (til) total sales [2] (iv) direct materials usage [2] (v) direct materials price [2] (vl) total direct materials [2] (VII) labour officiency [2] (vilt) labour rate 12] (ix)total labour 12] (b) A company operates a standard cosling system. Slate with reasons what offects might be observed It: (6) raw material is of a higher quality than usual. [6] (II) direct labour has a lower skill level than usual. [6] 12) REQUIRED (c) State which costing method is best suited to the following situations: (1) a company wishes to calculato a break even point. (II) a customer requires a quote for the manufacture of a large, one-off item. 12] (II) goods are produced in a sequence of continuous manufacturing operations. 12) (iv) production costs need to contain an element of the costs of support or service departments. (2) (v) a price is needed for one item out of a set of identical items. [2] Total: 40)