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QUESTION 2 Lucy Ltd is engaged in aerial spraying of vegetables Operating costs are difficult to control, so sandard costs and variances we reported. The

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QUESTION 2 Lucy Ltd is engaged in aerial spraying of vegetables Operating costs are difficult to control, so sandard costs and variances we reported. The following standards for direct labour were developed for the maxiprotect spraying service, which is the company's one of the major products Standard Quantity Standard Price or Rate Direct labour 2 hours per spray $20 per hour Lucy completed 40 maxiprotect sprays during May, using 90 direct labour hours. The total wages in May were 35.000,40% of which was direct labour cost of the max protect sprays Required: Calculate the direct labour price variance and direct labour efficiency variance. Show all workings. Give one possible explanation for each of the two variances you have calculated You may utilise following formulas: Dl price variance - Standard Labour price per hour - Actual labour price per hour) Actual hours used o efficiency variance - Standard hours for actual output - Actual hours for actual output) Standard Price (10 marks) Arial 3 (12pt) + T - - EP BI Click Save and Submit to save and submit. Click Save All Answers to save all answers

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