The following information was obtained from KMG Manufacturing Company.

Standard Data:

Direct material 4 yards @ $4 per yard

Direct labour 3 hours @ $6 per hour

Variable manufacturing overheads $2 per hour

Actual Data:

Direct material 48,000 yards @ $4.20 per yard

Direct labour 34,000 hours @ $5.20 per hour

Variable manufacturing overhead 34,000 hours totalling $80,000

Actual units produced 18,000

Required:

1. Compute the direct material price variance (3 marks)
2. Calculate the direct material usage variance (3 marks)
3. Total Direct Material Cost variance (3 marks)
4. Calculate direct labour rate variance (3 marks)
5. Calculate direct labour efficiency variance (3 marks)
6. Total Direct Labour Cost variance (3 marks)
7. Variable Manufacturing Overhead Rate (3 marks)
8. Variable Manufacturing Overhead Efficiency (3 marks)
9. Give One (1) possible cause of an adverse material price variance.(1 mark)