Makola Steel factory $($Pty$)$ Ltd manufactures special steel pipes used in mines and uses

a standard costing system:

Standard cost per steel pipe R

Direct material $1100$ kg $\backslash$times R$50$ per kg $55000$

Direct labour

$1500$ hours $\backslash$times R$105$

per hour $157500$

Variable production overheads $($varying with

hours worked$)$

$1500$ hours $\backslash$times R$30$ per

hour $45000$

Variable selling costs $30000$

Budgeted selling price per steel pipe $($unit$)450000$

During March $100$ units $($steel pipes$)$ were manufactured and sold.

Actual results per steel pipe Total $($R$)$

Cost of direct material $1050$ kg $\backslash$times R$55$ per kg $5775000$

Cost of direct labour

$1510$ hours $\backslash$times R$100$ per

hour $15100000$

Variable production

overheads

$4681000$

Variable selling costs $3005000$

Sales revenue $46000000$

REQUIRED Marks

For the month of March:

$($a$)$ Calculate the direct material purchase price variance. $(3)$

$($b$)$ Calculate the direct material quantity variance. $(3)$

$($c$)$ Calculate the direct labour rate variance. $(3)$

$($d$)$ Calculate the direct labour efficiency variance. $(3)$

$($e$)$ Calculate the variable production overhead rate variance. $(3)$

$($f$)$ Calculate the variable production overhead efficiency variance. $(3)$

$($g$)$ Calculate the selling price variance. $(3)$

$($h$)$ Calculate the variable selling costs spending variance. $($