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State one possible reason for the sub-variances calculation above estionZ Cummings Ltd manufactures a single product. The following is an extract from the Standard Cost

State one possible reason for the sub-variances calculation above

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estionZ Cummings Ltd manufactures a single product. The following is an extract from the Standard Cost Card for the month of July 2018. Description Standard Cost per unit 3 350. 00 Direct raw materials 4 metres Direct labour 1 hour The actual results for the month were as follows: Production 1,500 units Direct raw material purchased 5,750 metres for $5,002,500 Opening stock direct raw materials 400 metres Closing stock direct raw materials 350 metres Direct wages paid $5?7,500 for 1540 hours A. You are required to calculate and give one reason for each of the following variances: i. Direct material price variance. (2 marks) ii. Direct material usage variance. (2 marks) iii. Direct material total variance. (LS marks) iv. Direct material labour rare variance. (2 maria) v. Direct labour efciency variance. (2 marks) vi. Direct labour total variance. (1.5 marks} E. State W possible reason for the sub-variances calculated above. (4 marks) C. Discuss the relationship between management by exception and variances (5 marks} {Total 20 marks)

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