Management Accounting 2 151030007 copy 2 - Edited Highlight Rotate Mar Question 3 a) Jamey Pic has prepared the following standard cost information for one unit of product Jamey. Direct materials 4kg @ E10/kg Direct labour 2 hours @ E4/hour Fixed overheads 3 hours @ E2.50 The fixed overheads are based on a budgeted expenditure of $82,500 and budgeted activity of 30,000 hours. Actual results for the period were recorded as follows. Production 9.000 units Materials 33,600 kg (E340,000) Labour 17,500 hours ($70,500) Fixed overheads E80,000 Required: i. Calculate direct material price and usage variances 25 Marks Calculate direct labour rate and efficiency variances 25 Marks Calculate the total fixed production overhead variance 20 Marks b) For each of the five variances calculated in (a) above, provide plausible reasons why Jamey Pic may experience a favourable or adverse variance, 30 Marks Total 100 Marks MAY 24