question a, b, c, d, e, f, and g

Backe and Smash Ltd manufactures a brand of workbench. The standard amount of laminated material allowed is 2 square meters per workbench. The standard price of materials is 0.90 per square meter. During the month of June 200 workbenches were laminated. The amount of material used was 430 square meters and the price paid was 0.95 per square meter. The management has set a standard labour rate of 4 per direct labour hour. Actual hours worked in June were 9,820 at an actual cost of 37,316. The standard allowance of direct labour hours for the output achieved was 10,000 hours. Required: a Direct material price variance [2 MARKS] b. Direct material usage variance [2 MARKS] c. Direct labour rate variance [2 MARKS) d. Direct efficiency variance [2 MARKS e. to explain the term standard costing [3 MARKS f. to outline the benefits which a company may obtain from a standard costing system [5 MARKS) g. to discuss the problems which may arise in the development and operation of a standard costing system [4 MARKS