Opus Bhd manufactures one product, and the entire product is sold as soon as it is produced. There are no opening or closing stocks and work in progress is negligible.

The company operates a standard costing system and analysis of variances is made every month. The standard cost card for the product, a boomerang, is as follows:

STANDARD COST

Budgeted Production and Budgeted Sales: 4,000 units

		RM
Direct materials	2.0 kilos at RM5 per kilo	10.00
Direct wages	3 hours at RM4.00 per hour	12.00
Variable overheads		15.00

ACTUAL DATA

Production of 5,000 units

Materials: 9,000 kgs at RM5.20 RM46,800

Labor: 14,800 hours atRM3.80 RM56,240

Variable overhead 14,800 hours at RM4.90 RM72,520

Required:

Calculate the following variances for the month ended 31 July 2004:

(a) Material price

(b) Material usage

(c) Labour rate

(d) Labour efficiency

(e) Variable overhead expenditure

(f) Variable overhead efficiency

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