Question 2 (22 Marks) RU Limited operates a system of standard costing in respect of one its products which is manufactured within a single cost centre. The standard price of material is N$20 per litre. The standard wage rate is N$ 12 per hour and 5 hours are allowed to produce on unit Fixed production overhead is absorbed at the rate of 100% of wages cost. During the month of September 2020 the following took place: N$ Actual price (paid for materials purchased) 19.50 per litre Total direct wages cost 156 000 Fixed production overhead 158 000 Variances Favour (F) 80 000 N$ Unfavourable (U) Type Direct material price Direct material usage Direct labour rate Direct labour efficiency Fixed production overhead expenditure 5 000 5 760 2 760 8 000 Marks 2 4 REQUIRED 2.1 Budgeted output in units 2.2 Raw material purchased in litres 2.3 What is the standard quantity allowed for production? 2.4 Actual units produced 2.5 Actual hours worked 2.6 Actual Wage rate per hour 4 4 4 4 Page 14 of 16