Show ALL workings. Marks may be deducted for loss of clarity of expression and neatness of presentation.

Required:

Calculate the following variances:

(a) Material price variance and Material usage variance

(b) Total material variance and Labour rate variance

(c) Labour efficiency variance and Total labour variance

Question 4 Villa Limited has adopted the standard costing system and the following standard cost data applies for the production of a product named Explorer. Standard cost per unit: Materials: $200 for 40 kg Labour: $252 for 6 hours The actual results for the production of 900 units in March 2020 are as follows: Labour: $237,000 for 6,000 hours