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The budgeted and standard data for productivity include the following Direct labour Ten employees work for 45 hour a week. The standard rate of pay


The budgeted and standard data for productivity include the following


Direct labour
Ten employees work for 45 hour a week. The standard rate of pay is ksh 4 per hour. Output per hour is 40 kg of the product.


Direct material
Material          quantity kg       price per kg
X                          60                   2.00
Y                         40                     1.00
Z                        100                    1.40
From this standard matrix 180 kg of product is expected
Actual data for first week in April were as follows
Hours worked    45
Rate of pay ksh 4 per hour
Overhead incurredksh 5400
Output1980 kg
Production and consumption of materials were as follows:
Material     Quantity (kg)
X                  700
Y                   440
Z                  1120

Required
(a)Calculate the following direct material variance for each material (10mks)
i.Total
ii. Price
iii. Usage
iv. mix
(b)Calculate the direct labor efficiency variance (10mks)

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