OnStage Productions Limited produces sets, props and other equipment used in the movie and TV industry. They recently completed an order for props to be used in the latest James Bond movie. They use a standard costing system to control their costs. Per the standard costs determined for their projects, the company should incur 780 direct labour hours in their production factory each month, which would produce 1,950 props. The standard costs associated with this level of production are as follows: Per Unit of Total Product $ 35,490 $ 18.20 $ 7,020 $ 3.60 Direct Materials Direct Labour Variable Manufacturing Overhead (1) Fixed Manufacturing Overhead (1) $ 1.20 $ 2,340 $ 4,680 $ $ 2.40 25.40 (1) Applied based on direct labour hours. During the month of March, the factory employees worked a total of 760 direct labour hours and produced 2,XXX props. Actual costs incurred during the month were as follows: Total Per Unit of Product 36,000 $ 18.00 Direct Materials (6,000 pounds) $ (1) Applied based on direct labour hours. During the month of March, the factory employees worked a total of 760 direct labour hours and produced 2,XXX props. Actual costs incurred during the month were as follows: Direct Materials (6,000 pounds) Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Per Unit of Product $ 36,000 $ 18.00 $ 7,600 $ 3.80 $ 3,800 $ 1.90 $ 4,600 $ 2.30 $ 26.00 Per the standard costs determined for their projects, each prop requires 2.8 pounds of direct materials. All direct materials purchased during the month of March were used in the production process. REQUIRED: Compute the following variances for the month of March: 1. The direct materials price and quantity variances. (10 Marks) 2. The direct labour rate and efficiency variances. (10 Marks) 3. The variable overhead spending and efficiency variances. (10 Marks) 4. The fixed manufacturing overhead budget and volume variances. (6 Marks) Ver the standara costs determined for their projects, each prop requires 2.8 pounas or airect materiais. All direct materials purchased during the month of March were used in the production process. REQUIRED: Compute the following variances for the month of March: 1. The direct materials price and quantity variances. (10 Marks) 2. The direct labour rate and efficiency variances. (10 Marks) 3. The variable overhead spending and efficiency variances. (10 Marks) 4. The fixed manufacturing overhead budget and volume variances. (6 Marks) NOTE: For actual units produced, you must fill in the last THREE digits of this number based on your student number. For example, if your Student Number is T123456, then the number of units will be 2,456. NOTE: You should round your answers to TWO decimal places
