Question Q2 Read the scenario below and answer the questions that follow:

Dot Furniture (Pty) Ltd is a company operating in Republic of South Africa. It produces and sells household furniture. The companys standard direct labour cost of one of their fastest-selling recliner chairs is as follows: 20 hours of grade B labour is needed to produce one unit of the recliner chair, and the standard cost is at R50 per hour. In the third quarter of 2022, 3 000 recliner chairs were made. The direct labour cost that was actually paid was R4.8 million for 90 000 hours of work.

2.1 Using the table provided below, classify the following company costs into fixed/variable costs and direct/indirect costs:

Costs	Fixed or variable	Direct or indirect
Wages paid to factory workers
Basic salary paid to sales staff
Commission paid to sales staff (as a percentage of sales)
Glue used in the production process
Factory supervisors salary

2.2 Calculate the following:

2.2.1 Direct labour efficiency variance

2.2.2 Direct labour rate variance