MARY'S PRODUCTS (PTY) LTD

The following statement summarises some of the standard costing variances of one of Mary's Products for January 2022:

Selling price variance R11 895 (unfavourable)

Unfavourable Favourable

Some cost variances: R R

Direct material price 2500

Direct labour rate 500

Direct labour efficiency 400

Variable manufacturing

Overhead expenditure 1500

fixed manufacturing

overhead expenditure 600

The budget for the same period contained the following data:

Sales volume 5 000 units

Sales revenue R50 000

Production volume 5 000 units

Direct materials purchased and used 1 600 kg

Direct material costs R10 000

Direct labour hours 2 400

Direct labour costs R10 000

Variable manufacturing overheads R4 100

Fixed manufacturing overheads. R10 000

Additional information:

• Inventories of direct materials and finished goods are valued at standard cost.
• During the month the actual number of units produced and sold were 5 100.
• The total actual direct materials purchased and used for the month were 2 000 kg.
• Variable manufacturing overheads varies with production volume.
• The company has not budgeted to hold any opening and closing of inventory.

Questions

Calculatethe following:

1. (i)The actual selling price per unit.
2. (ii)The actual price per kilogram of materials.
3. (iii)The total actual direct material costs.
4. (iv)The actual direct labour hours.
5. (v)The actual direct labour costs.
6. (vi)The actual variable manufacturing overheads.
7. (vii)The actual fixed manufacturing overheads.