QUESTION 5 (8 marks; 14.4 minutes) McDaniel Company manufactures 100 kg bags of fertilizer that have the following unit standard costs for direct materials and direct labour. 5.1 The following activities were recorded for October: Actual 1 000 bags were manufactured 95 000 grams of materials costing R76 000 were purchased 102 500 grams of materials were used R12 000 was paid for 475 hours of direct labour There were no beginning or ending work-in-process inventories. Required: 5.2 EXAM Direct materials (100 grams @ R1.00 per gram) Direct labour (0.5 hours at R24 per hour) Total standard prime cost per 100 gram bag 6.1 QUESTION 6 (8 marks; 14.4 minutes) The following costs were developed for one of the products of Larry Corporation: Variable overhead: 8 hours @ R8 per hour Fixed overhead: 8 hours @ R12 per hour 6.2 R100 R 12 R112 Calculate the direct materials price and usage variances. Calculate the direct labour rate and efficiency variances.. The following information is available regarding the company's operations for the period: Units produced 11 000 Direct labour 84 000 hours costing R840 000 840000/24000 Overhead incurred: Variable Fixed R756 000 R1 000 000 R64 R96 Budgeted fixed overhead for the period is R960 000, and the standard fixed overhead rate is based on expected capacity of 80 000 direct labour hours. Required: (4) (4) =10 Calculate the variable spending and efficiency variances. Overheads. Calculate the fixed overhead spending and volume variances. (4) (4)