SIMUKOKO Ltd manufactures one product and the entire product is sold as it is produced. There are no opening and closing stocks, work in progress is negligible. The company operates a standard costing system and analysis of variances is made every month.

The standard cost card for the product - a Boomerang is as follows:

Per unit

Direct materials 1 kg @ K3/kg 3.00

Direct Wages 2 hours @ K1 /hr 2.00

Variable Overheads 2 hours @ K0.50 /hr 1.00

Fixed Overhead per unit 2 hours @ K3.00 6.00

Standard Cost 12.00

Profit per unit 13.00

Standard Selling price 25.00

The selling and administration expenses are not included in the standard cost, and are deducted from profit as a period charge.

Budgeted output for the month of June 2017 was 5,100 units.

Actual results for June 2020 were as follows:

Production of 4,900 units was sold for K98, 000

Materials consumed in production amounted to 2,500 kg at a cost of K10,500.

Actual Labor hours paid for amounted to 8,000 hours at a cost of K17, 000

Variable overhead amounted to K3, 000

Fixed overheads amounted to K45, 000

Selling and administration expenses amounted to K15, 000.

REQUIRED

Calculate the following variances:

a. Material Price Variance, Material Usage and Material Total Variances (2)

b. Labour Rate Variance, Labour Efficiency and Labour Total Variance (2)

c. Variable Overhead Expenditure and Variable overhead efficiency variances (2)

d. Sales price and sales volume variances