one Finnacial Management Sum... a QUESTION 1 [TOTAL MARKS: 33.33] Kylemore Krafts Ltd produces tourist souvenirs. The following financial data has been provided for March 2022: Standard cost per unit: Budgeted sales for March: 200 units. Direct material Direct labour cost Variable overheads 2 0.6 meters per unit sold 1.80 per meter hours per unit sold 11 per hour 3.60 per hour 2 hours per unit sold Budged fixed overheads for month are 3,000. Actual Results: Actual sales for March: 220 units Direct materials 110 meters @2 per meter E220 direct material cost Direct Labour Variable Overheads Actual Fixed Overheads 465 hours 12 per hour 5,580 direct labour cost 1,650 2.500 Requirement: Q1(a) [8 Marks] Prepare a statement showing the fixed budget, and the flexed budget for the month of March 2022. Q1(b) Calculate the following variances for the month of March 2022 1) Materials price variance 2) Materials usage variance 3) Total material variance 4) Labour rate variance 5) Labour efficiency variance 6) Total labour variance [10 Marks] 7) Total variable overhead cost variance 8) Fixed overhead cost variance Q1(c) [8 Marks] If each of the above variances were adverse, advise management on ONE action that could be taken to improve each variance. Q 1(d) [7.33 Marks] Describe in your own words the standard setting process. You should support your answer with relevant industry examples. [End of Question 1] MGMT07020-FINANCIAL MANAGEMENT Semester 2 Examinations 2021/2022 Page 3 of 5