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Owen limited uses a standard costing system. The standard cost card for one product is shown below. Direct material 4kg @s5 per kg 20 Direct

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Owen limited uses a standard costing system. The standard cost card for one product is shown below. Direct material 4kg @s5 per kg 20 Direct labour 2 hour @ S8 per hour 16 Variable overhead 2 hours @ 3.5 per hour 7 Total variable cost 43 Fixed overhead 2 hours @ $7 per hour 14 Total production cost 57 Standard selling price 70 Standard profit margin 13 The budgeted output and sales was 1000 units. Actual production and sales for the period were 1300 units. Actual cost and revenue were as follows. Direct material 5000 kg costing 22,700 Direct labour 2,850 hours costing 21,500 Variable overhead 7,800 Fixed overhead 14,600 Sales revenue 1,300 units @ $68 88,400 Required: Calculate the following variances 1. Material usage and price 2. Labour efficiency and rate 3. Variable overheads efficiency and expenditure 4. Fixed overhead efficiency, capacity and expenditure 5. Sales price and sale volume

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