Poppy Ltd manufactures a single product, the rug. The standard cost card for this item is as follows: Direct materials: A4 kgs at 7 per kg B 8 kgs at 4 per kg 60 28 75 15 Direct labour - 3 hrs at 25 32 Variable production overhead - 3 hrs at 5 Fixed production overhead - 3 hrs at 20 60 210 The standard sales price per unit is 260. The budgeted production and sales for March were 3,000 units, and the budgeted fixed production overhead (from which the fixed cost per unit was derived) was 180,000. Actual results for March were: Sales and production 2,800 units Sales revenue 714,000 Direct materials (purchased): A 18,000 kgs 131,400 B 14,000 kgs 54,600 Direct materials (used): A 13,000 kgs B 28,000 kgs Direct labour - 8,600 hrs 232,200 Variable production overhead 51,600 Fixed production overhead 175,000 All inventory is valued at standard cost. *Note the company operates an absorption costing system* REQUIREMENT Prepare the following variances - 1) Sales price and volume 2) Materials price and usage 3) Direct labour rate and efficiency 4) Variable overhead expenditure and efficiency 5) Fixed overhead expenditure and volume Poppy Ltd manufactures a single product, the rug. The standard cost card for this item is as follows: Direct materials: A4 kgs at 7 per kg B 8 kgs at 4 per kg 60 28 75 15 Direct labour - 3 hrs at 25 32 Variable production overhead - 3 hrs at 5 Fixed production overhead - 3 hrs at 20 60 210 The standard sales price per unit is 260. The budgeted production and sales for March were 3,000 units, and the budgeted fixed production overhead (from which the fixed cost per unit was derived) was 180,000. Actual results for March were: Sales and production 2,800 units Sales revenue 714,000 Direct materials (purchased): A 18,000 kgs 131,400 B 14,000 kgs 54,600 Direct materials (used): A 13,000 kgs B 28,000 kgs Direct labour - 8,600 hrs 232,200 Variable production overhead 51,600 Fixed production overhead 175,000 All inventory is valued at standard cost. *Note the company operates an absorption costing system* REQUIREMENT Prepare the following variances - 1) Sales price and volume 2) Materials price and usage 3) Direct labour rate and efficiency 4) Variable overhead expenditure and efficiency 5) Fixed overhead expenditure and volume