Question)

The standard costs and budget figures relating to production of Playfair's single product are: Direct material 2 kgs @ $7.25 per kg $ 14.50 Direct labour 14 of an hour @ $18 per hour $ 4.50 Factory Overhead 3 11.50 Standard Cost $ 30.50 Normal production: 12,000 units Budgeted fixed overhead: $60,000 Overhead is applied on the basis of standard direct labour hours. Actual data for the period: Production: 12,250 units Material purchased: 30,000 kgs @ $7.30 per kg Material issued to production: 24,515 kgs Direct labour cost: 3,084 hours @ $18.25 per hour Factory overhead: $139,420 (362,000 fixed) Calculate the following variances for the month. Show all relevant workings. (i) Direct labour rate variance (DLRV) = (AR-SR) x AH (ii) Direct labour efficiency variance (DLEV) = (AH -SH) x SR (iii) Variable overhead spending variance (VOHSV) = (AVOR-SVOR) x AH (iv) Variable overhead efficiency variance (VOHEV) = (AH-SH) x SVOR Provide your answers in the following manner in the box below: () DLRV = (AR-SR) x AH = (ii) DLEV = (AH -SH) x SR = (iii) VOHSV = (AVOR-SVOR) x AH = (iv) VOHEV = (AH-SH) x SVOR =