Question 3 On 1 May 2018. Bovar Company began the manufacture of a new paging machine known as Dandy. The company installed a standard costing system to account for manufacturing costs The standard costs for a unit of Dandy are: Direct material (3kg @ R5 per kg) Direct labour (% hour @ R20 per hour) Manufacturing overhead (75% of direct labour costs) R15.00 R10.00 R 7.50 R32.50 The following data were obtained from Bovar's records for the month of May: Debit Credit R125 000 R68 250 Revenues Accounts payable control (for May's purchases of direct materials) Direct materials price variance Direct materials efficiency variance Direct labour rate variance Direct labour efficiency variance R3 250 R2 500 R1 900 R2 000 Actual production in May was 4 000 units of Dandy, and actual sales for May were 2 500 unite The amount shown for direct materials price variance applies to materials purchased during May. There was no beginning inventory of materials on 1 May 2018 Required: 3.1 Calculate each of the following items for Bovar for the month of May. Show all your calculations: Standard direct labour hours allowed for actual output produced Actual direct labour hours worked Actual direct labour wage rate Standard quantity of direct materials allowed (in kilograms) Actual quantity of direct materials used in kilograms) Actual quantity of direct materials purchased in kilograms) Actual direct materials price per kilogram 3.2 Prepare journal entries for the purchasing and issuing of direct materials and the allocation of direct labour to production. Write off the variances to cost of goods sold