Question 3 Speed Tec plc provides you with the following information regarding one of its products: Budgeted production and sales (units) 1,000 Actual units produced and sold (units) 1,400 STANDARD COSTS Standard unit selling price 70 Actual selling price 65 Standard material cost: 3 kg @ 4 per kg 12 Standard labour cost: 2 hrs @ 6 per hr. 12 Standard variable overhead: 2 hrs @ 4 per hr. 8 Standard fixed overhead: 2 hrs @ 8 per hour 16 ACTUAL COSTS Actual materials bought and used: 3,000 kg @5 per kg = 15,000 Actual labour used: 3,000 hrs @ 6.67 per hour = 20,000 Actual variable overhead was 10,800 Actual fixed overhead was 15,000 Required! (a) The total flexed sales revenue is --- (1 marks) (b) Calculate the materials efficiency (usage) variance. (2 marks) (c) Calculate the labour rate variance (2 marks) (d) 'Calculate the variable overhead efficiency rate. (3 marks) (e) Which of the following could be reasons for having an adverse labour efficiency variance? (Select all that apply). a. Employing lower-skilled workers b. Using lower grade material c. Paying labour a higher rate per hour d. Employing higher-skilled workers