QUESTION ONE [22]

The following information is for AgriCool Finance

A manufacture that manufactures AgriCool Finance provides the following information for April 2020

Budget figures

Variable manufacturing overheads R36000

Fixed manufacturing overheads R86400

Expected production 1800 units

Labour hours 7200

Actual results

Variable manufacturing overheads R34443

Fixed manufacturing overheadsR89784

Actual production1890 units

Labour hours worked 7740

Required:

1.1.Calculate the variable manufacturing efficiency variance.(5)

1.2.Calculate the fixed manufacturing volume variance.(4)

The following information is for Anonaya Gardens Company : The company uses the standard costing system. The standard for Product Z are as follows

Material 4 kilograms at R2. 50 per kilogram

Labour 4 hours at R50 per hour

Variable overheads R20 per labour hour

Fixed overheads R24000

Normal production 24000 units per month

Actual information for the month September 2019 is :

Material 81000 kilograms at R2.50 per kilogram

Labour 78000 hours at R48 per hour

Variable overheads R22 per labour hour

Fixed overheads R26500

Production 20000 units

Required

1.3.Calculate the material quantity variance.(4)

1.4.Calculate the variable manufacturing overhead efficiency variance.(5)

1.5.Calculate fixed manufacturing overhead volume variance.(4)