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Question 2 (15 Marks) INFORMATION: Energis Manufacturers produces a product which has the following standard costs: Material A: 4 kilograms at R10 per kilogram Material

Question 2 (15 Marks)

INFORMATION:

Energis Manufacturers produces a product which has the following standard costs:

Material A: 4 kilograms at R10 per kilogram

Material B: 5 kilograms at R15 per kilogram

Direct labour: 6 hours at R10 per hour

Fixed overheads: R120 000

Budgeted production: 10 000 units

Actual results for November 2019 were as follows:

Material A: 50 000 kg at R12 per kilogram

Material B: 64 000 kg at R14 per kilogram

Direct labour: 66 000 hours at R11 per hour

Fixed overheads: R122 000

Production: 12 000 units

REQUIRED: Calculate the following:

2.1.1 Material mix variance (6 marks)

2.1.2 Material yield variance (6 marks)

2.1.3 Fixed manufacturing overheads volume capacity variance (3 marks)

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