Namtech Ltd, is an electronics company which makes two types of televisions -plasma screen TV and LCO TV. It operates within a highly competitive market and is constantly under pressure to reduce prices. Namtech Ltd operates a standard costing system and performs a detailed analysis of both products on a monthly basis E xtracts from the management information for the month of November are as follaws Notes Material Price Variance otal Labour Variance NS 6 050 vourable . The budgeted total sales volume for the TVs was 1180 units, consisting of an equal mix of plasma screen TVs and LCD screen TVs. The actual sale volume was 750 plasma TVs and 650 LCO TVs. Standard sales prices are N$ 350.00 per unit for the plasma TVs and NS 300.00 for the LCO TVs. The actual sales prices achieved during November were N$ 330.00 per unit of plasma TVs and N$ 290 per unit for the LCD TVs. The standard comtrbution for plasma TVs and LCD TVs are NS 190.00 and N$ 180.00 respectively 2. The reason for this variasce was an increase in the purchase price of its key components G ammer, E ach plasma TV and each LCD TV made requires one unit of com ponent Gammer for which Namtech Ltd standard cost is NS 60.00 per unit. Due to a shortage ofcomponents n the market, the market price for November went up to N$ 85.00 per unit of G ammer Namtech actually paid N$80.00 per unit for it. 3. Each Plasma TV uses two standard hours of la bour and each LCD TV uses one and a halt standard hour of labour. The standard cost for the la bour is N$ 14.00 per hour and this also reflects the actual cost per labour for the company permanent staff in November. However because of the increase in the sales and production volumes in November, the company also had to use additional temporary labour at a higher cost of NS 18.00 per hour. The total capacity of Namtech Ltd permanent workforce is 2 200 hours production per month, assuming full efficiency in the month of November, the permanent workforce were wholly efficient, taking exactly two hours to compiete each plasma TV and exactly one and a half hour to produce each LCD TV. The total labour variance therefore relates solely to the te?porary vorkers, who took twice as long as the permanent workers to complete their REQUIRED 4.1 Calculate the Sales Price Variance 4.2 Calculate the Sale Volume Contribution Variance 4.3 Calculate the Material Price Planning Variance 4 Calculate the Material Price Operational Variance 4.5 Caleulate the labour Rate Variance 4.6 Calculate the Labour E fficiency Variance 4.7 Explain any three reasons why the company wil be intere sted in computing the variances in 3.3 and 3.4 Page 12 ol 12 O 0