QUESTION 4 (15 marks; 27 minutes) Hides of March Ltd manufacture a standard leather boot, the M25. Standard unit cost and profit - M25 15.00 Direct materials -leather 3 units at R5 per unit Direct labour 1.5 hours at R4 per hour Variable production overheads 1 V2 ? hours at R2 per hour Fixed production overheads* 1/2 ? hours at R6 per hour Standard cost Selling price Standard gross profit *These costs vary with direct labour hours 6.00 3.00 9.00 33.00 45.00 12.00 Budget - June 2019 Production and sales for June 2019 were 3 000 units of M25. Actual results - June 2019 Production and sales of M25 Sales revenue 3 200 units R140 800 Costs incurred: 28.75 Leather purchased and used 9 200 units R47 000 Direct labour paid (assume that there was no idle 5 850 R24 100 time) hours Variable production overheads R10 650 Fixed production overheads R31 500 Inventory valuation methods Leather at standard cost Work-in-progress and finished goods at standard full production cost. Required: (15) 4.1 Showing all working, calculate all variances for: a. Direct materials b. Direct labour Variable overheads Fixed overheads