Question (20) Namib Leather Ltd purchases leather which is cut into small strips. These strips are then sewn together to make car seat covers. The standard variable cost per seat cover is as follows: Leather (2 metres @ R28 per metre) R56,00 Labour (3 hours @ R18 per hour) R54,00 Manufacturing overheads R30,00 Total standard variable cost per unit R140,00 Additional information: The company budgeted to manufacture 12 000 units in December 2011. Variable manufacturing overheads vary with hours worked. Actual results for December 2011 were as follows: Total leather cost @ R32 per metre Total labour cost (30 285 hours) R658 560,00 R529 987,50 Total variable manufacturing overheads R300 522,00 R1 489 069.50 Total actual variable cost per unit R149,50 9.960 Actual units manufactured during December 2011 Round off all variances to the nearest Rand. REQUIRED: a) Calculate the actual quantity of leather used in December 2011. (2) b) Calculate the material purchase price variance. c) Calculate the material quantity variance. d) Calculate the total material variance. e) Calculate the labour rate variance. f) Calculate the labour efficiency variance. g) Calculate the total labour variance. 0000000