Question 5 Answer the questions from the information provided. 5.1.1 Materials issue price variance 5.1 Use the information provided below to calculate the following variances. In each case state whether the variance is favourable or unfavourable. (3 marks) (3 marks) (3 marks) (3 marks) 5.1.2 Materials quantity variance 5.1.3 Labour rate variance 5.1.4 Total labour variance, without using the other labour variances. INFORMATION Standards: The normal monthly production of Everest Manufacturers is 4 000 units. The following standards were set for each unit of product Nix: Raw materials: 2 kilograms of Material V at a price of R5 per kilogram. Direct labour: 5 labour hours at a rate of R10 per hour. Actual information for March 2022: 10 000 kg of Material V was purchased for R48 000. 3 800 units of product Nix were produced using 8 360 kg of Material V. The wage records showed that it took 18 240 hours at a cost of R191 520 to produce the 3 800 units of product Nix. 5.2.1 5.2 Use the information provided below to calculate the following overheads variances. In each case state whether the variance is favourable or unfavourable. Variable overheads efficiency variance (2 marks) (2 marks) (4 marks) 5.2.2 Variable overheads expenditure variance 5.2.3 Fixed overheads volume variance INFORMATION Supreme Manufacturers manufactures Product Vix. It provided the following information for March 2022: Budgeted figures: Variable manufacturing overheads R6 per labour hour Fixed manufacturing overheads R240 000 Labour hours 12 000 hours Expected production 2 500 units Actual results: Variable manufacturing overheads Fixed manufacturing overheads Labour hours worked Actual production R77 500 R250 000 12 500 hours 3 000 units