Task 04 Praveena Limited makes a single product, T, using a single raw material R. Standard cost relating to T have been calculated as follows. Standard cost schedule Per Unit (Rs) Direct material, R, 10kg at Rs. 20 per kg Direct labour, 5 hours at Rs.6 per hour 200 30 Variable production overhead, 5 hours at Rs.1 per hour 5 Fixed production overhead, 5 hours at Rs.10 per hour 50 Standard cost 285 Standard profit 95 Standard selling price 380 The company expects to produce 900 units in month of April 2021. During April 2021 the actual results are as follows. 800 units of product T were produced and sold at Rs. 312,000. 7800 kgs costing Rs. 159,900 were bought and used. 4200 hours were worked during the month and total wages were Rs. 24,150. The variable production overhead for the month was Rs. 4,900. The fixed production overhead for the month was Rs. 47,000. 1. Calculate the following variances for the month of April 2021. a. Direct material cost variance and direct material usage variance b. Direct labor rate variance and direct labor efficiency variance (3 Marks) (3 Marks) c. Variable overhead expenditure variance and variable overhead efficiency variance (3 Marks) d. Fixed overhead expenditure variance, fixed overhead efficiency variance and fixed overhead capacity variance (3 Marks) e. Sales price variance and sales volume variance (3 Marks) 1. Prepare a summary of total cost variances and total sales variances. (5 Marks) 2. Identify possible causes for the variances and recommend corrective actions for adverse variances. (10 marks)