QUESTION 1 Sung Industries manufactures tracking devices, the company uses a standard costing system, activities of the year ending in December 202 are presented in Table 1 : Table 1: Cost Performance report for the year ending in December 20x2 There is no change in the opening and closing inventory of material; accordingly, quantity purchased equals to quantity used. The actual price is R27.30. INC 2601/S2/2022 Unfavorable variances occur when the actual cost are higher than budgeted cost. Favorable variances occur when actual cost are lower than budgeted cost. Note: a variance can be calculated as either actual minus standard or standard minus actual. Therefore, a positive or negative variance is meaningless. The standard cost card for tracking devices is presented Table 2, normal production is 7150 units per annum: Table 2: Standard Costing You are required to calculate the respective cost variances in reference to the case study presented and choose the best suitable answer: 1.1 Total direct material variance a) R183 690.00 b) R173 005.25 c) R186.00 1.2 Material price variance a) R9 630.00 b) R9360.00 c) R9 663.00 INC 2601/S2/2022 Unfavorable variances occur when the actual cost are higher than budgeted cost. Favorable variances occur when actual cost are lower than budgeted cost. Note: a variance can be calculated as either actual minus standard or standard minus actual. Therefore, a positive or negative variance is meaningless. The standard cost card for tracking devices is presented Table 2, normal production is 7150 units per annum: Table 2: Standard Costing You are required to calculate the respective cost variances in reference to the case study presented and choose the best suitable answer: 1.1 Total direct material variance a) R183690.00 b) R173005.25 c) R186.00 1.2 Material price variance a) R9630.00 b) R9360.00 c) R9663.00 QUESTION 1 Sung Industries manufactures tracking devices, the company uses a standard costing system, activities of the year ending in December 202 are presented in Table 1 : Table 1: Cost Performance report for the year ending in December 20x2 There is no change in the opening and closing inventory of material; accordingly, quantity purchased equals to quantity used. The actual price is R27.30. INC 2601/S2/2022 Unfavorable variances occur when the actual cost are higher than budgeted cost. Favorable variances occur when actual cost are lower than budgeted cost. Note: a variance can be calculated as either actual minus standard or standard minus actual. Therefore, a positive or negative variance is meaningless. The standard cost card for tracking devices is presented Table 2, normal production is 7150 units per annum: Table 2: Standard Costing You are required to calculate the respective cost variances in reference to the case study presented and choose the best suitable answer: 1.1 Total direct material variance a) R183 690.00 b) R173 005.25 c) R186.00 1.2 Material price variance a) R9 630.00 b) R9360.00 c) R9 663.00 INC 2601/S2/2022 Unfavorable variances occur when the actual cost are higher than budgeted cost. Favorable variances occur when actual cost are lower than budgeted cost. Note: a variance can be calculated as either actual minus standard or standard minus actual. Therefore, a positive or negative variance is meaningless. The standard cost card for tracking devices is presented Table 2, normal production is 7150 units per annum: Table 2: Standard Costing You are required to calculate the respective cost variances in reference to the case study presented and choose the best suitable answer: 1.1 Total direct material variance a) R183690.00 b) R173005.25 c) R186.00 1.2 Material price variance a) R9630.00 b) R9360.00 c) R9663.00