Question 1 A company manufactures a single product for which the standard variable cost is: K per unit Direct material: 81 kg x K7 per kg Direct labour: 97 hours x K8 per hour Variable overhead: 97 hours x K3 per hour 567 776 291 1,634 Budget Sales and production volume Standard selling price Standard variable cost 81,600 units K59 per unit K24 per unit During January, 530 units were produced and the costs incurred were as follows: Direct material: 42,845 kg purchased and used; cost K308,484 Direct labour: ,380 hours worked; cost K400,764 Variable overhead: cost K156,709 Actual results Sales and production volume Actual selling price Actual variable cost 82,400 units K57 per unit K23 per unit Required: (a) Calculate the following variances (ii) Direct material price variance Direct material usage variance Direct labour total variance Variable overhead total variance Variable overhead expenditure variance (iv) (b) Discuss FOUR of the uses of Standard Costing (c) Discuss three (3) advantages and three (3) disadvantages of Standard Costing