Question 1 Vural costs: litre per 3 Unit. The standard cost of making and selling a product in the Macmillan Limited is as follows : Direct Materials 2 litres @ 09:00 Direct Labour : 8 hours @ 10-pere hour Variable Production Overheads: 8 hours 5 per hour Budgeted sales for February 2022 ar 3200 units at a sales price of 250 per in February 2012 the actual results were as follows: 3500 units were produced and sold. 45, 500 litres of direct materials were used in production at a cast of 386, 750 29,000 direct labour hours worked at a cost 04 319,000 variable Production Overheads (based on Direct Labour Hours ) cost 174,000 Saks revenue amounted to to 840,000 Question 1 Required: Calculate the following variances Direct Materials Pole ii) Direct Materials Usuge Direct Labour Rate Direct Labour Efficiency v) Variable Overhead Expenditure vi) Variable Overhead Efficiency vii) Sales Price variance 6 Wili) Sales Volume Variance iv b) Orive reasons for the Direct Materials variances calculated above