MTC NAM 4 40.26% 1 15:17 Number of kilograms for timber required per wooden chair Labour hours required per w Time left 0:47:36 Variable manufacturing overneara cost per nout Total fixed manufacturing cost per month 2 kg @ N$ 6/kg 2 hours @ N$12/hour NSS NS5 000 During the month of September 2021, the company's records revealed that it managed to achieve 95% of its production target, whereby N$7 560 have been spent in the acquisition of timber at 5% more than what was budgeted for Moreover, 90% of the materials (timber) purchased have been used in achieving the 95% production volume. It's the company's policy to absorb overheads on the basis of direct labour hours. Total monthly labour cost amounted to N$11800. It was established that employees were paid at an hourly rate of N$12.50, total fixed manufacturing overheads amounted to NS4 500, and variable manufacturing overheard cost amounted to NS7 OBO. 3 3 REQUIRED: Calculate: Marks 1.1. Material variances (60) price variance usage variance 1.2. Labour variances: (1) rate variance (1) efficiency variance 1.3. Variable manufacturing overhead variances: (1) expenditure variance (11) efficiency variance (NB: In each case, indicate whether the variance is favourable or unfavourable, and also provide a possible reason why such type of variance occurred.) 1.4. Suppose Company A decides to 3 3 MTC NAM 4 40.26% 1 15:17 Number of kilograms for timber required per wooden chair Labour hours required per w Time left 0:47:36 Variable manufacturing overneara cost per nout Total fixed manufacturing cost per month 2 kg @ N$ 6/kg 2 hours @ N$12/hour NSS NS5 000 During the month of September 2021, the company's records revealed that it managed to achieve 95% of its production target, whereby N$7 560 have been spent in the acquisition of timber at 5% more than what was budgeted for Moreover, 90% of the materials (timber) purchased have been used in achieving the 95% production volume. It's the company's policy to absorb overheads on the basis of direct labour hours. Total monthly labour cost amounted to N$11800. It was established that employees were paid at an hourly rate of N$12.50, total fixed manufacturing overheads amounted to NS4 500, and variable manufacturing overheard cost amounted to NS7 OBO. 3 3 REQUIRED: Calculate: Marks 1.1. Material variances (60) price variance usage variance 1.2. Labour variances: (1) rate variance (1) efficiency variance 1.3. Variable manufacturing overhead variances: (1) expenditure variance (11) efficiency variance (NB: In each case, indicate whether the variance is favourable or unfavourable, and also provide a possible reason why such type of variance occurred.) 1.4. Suppose Company A decides to 3 3
