Questions Mortensen pic manufactures wooden toys. It uses a standard costing system to control costs. The cutting department cuts the shapes, which are sold as toy animals. The process is very labour intensive and requires highly skilled labour to minimise the wastage of the expensive hardwood used. The standard cost card for a set of toy animals is given below. ardwood Direct labour Fixed overhead 0-1 cubic metres at 160 per cubic metre 30 minutes at 9 per hour 30 minutes at 4 per direct abour hour E 16-00 4.50 2.00 22.50 Total cost Fixed overhead absorption rates are based upon budgeted monthly fixed overheads of 25,000 and a budgeted monthly output of 13,000 sets of animals. All stocks are recorded at standard cost In the most recent month, 14,000 sets of animals were made using 1,500 cubic metres of hardwood. Purchases for the period were 1,800 cubic metres of hardwood at 150 per cubic metre. 8,000 direct labour hours were worked and paid at 9-25 per hour. Actual fixed overheads were 23,000 for the ..onth. Required: (a) Calculate the following variances from standard cost for the most recent month: 1. Raw material price II. . Raw material usage III. Labour rate IV. Labour efficiency V. Fixed overhead expenditure VI. Fixed overhead volume VII. Fixed overhead capacity VIII. Fixed overhead efficiency