QUESTION ONE

A company manufactures a single product, that has a standard cost per as below

The standard selling price is K$195$

The monthly budget production and sales was $1,300$ units.

$\backslash$table$[[$Actual figures for the month of January $2019$ are as follows:,$],[$Sales$,1,400$ units @ K$200$ each.$],[$Production$,1,500$ Units$],[$Direct materials,$23,500$ metres @ K$6\mathrm{.}50$ per metre$],[$Direct wages,$7,000$ hours @ K$7\mathrm{.}80$ per hour$],[$Variable overheads,K$25,600],[$Fixed overheads,K$14,200]]$

Required:

Calculate the following variances:

$($a$)$ Material price

$($b$)$ Material usage

$($c$)$ Labour rate

$($d$)$ Labour efficiency

$($e$)$ Variable overhead expenditure

$($f$)$ Variable overhead efficiency

$($g$)$ Fixed overhead volume

$($h$)$ Fixed overhead expenditure

$($i$)$ Sales Price

$($j$)$ Sales Volume