1. The following data relate to ProductX and its materials and labour costs for May:

Budget
Output	6,000 units
Materials	5 kg per unit at 3.00 per kg
Labour	3 hours per unit at 6.00 per hour

Actual
Output	5,000 units
Materials (purchased and used)	30,000 kg at4.00 per kg
Labour	2 hours per unit at5.00 per hour

It has now been agreed that the standard price for the raw material purchased in May should have been 7 per kg.

Required:

1. Using actual units produced and standard quantity of materials, calculate the materials price variance caused by the error in the planning process for May.

(5 marks)

1. Using 7 per kg as the standard materials cost, calculate the materials usage (quantity) variance for May.

(7 marks)

1. Using 7 per kg as the standard materials cost, calculate the materialsprice variance for May.

(7 marks)

1. Calculate the labour efficiency (hour) variance for May.

(6 marks)

1. Calculate the labour rate (price) variance for May.

(6 marks)