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Titan (Pty) Ltd manufactures two types of snake cages, the Plain and the 'Deluxe cage. Both of these cages are made of one component -

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Titan (Pty) Ltd manufactures two types of snake cages, the "Plain" and the 'Deluxe" cage. Both of these cages are made of one component - Oak wood. The standard direct labour hours per unit of production and budgeted production quantities for the quarter ended June 2018 were: Product Standard direct hours Budgeted production quantities Plain 0.40 hours 36 000 cages Deluxe 0.56 hours 22 000 cages The standard wage rate for all assembly workers was R5 per hour. Throughout the quarter (12 weeks), 53 assembly workers were employed, working a standard 40 hour week. The standard manufacturing overhead cost per cage is based on direct labour hours and is as follows: Variable overhead: R24 per direct labour hour Fixed overhead: R157 500 in total . . The actual information for the quarter is as follows: Production: Plain cage Production: Deluxe cage Direct wages paid Material (Oak) purchased Material (Oak) price variance Material (Oak) usage (Plain cage) Material (Oak) usage variance (Plain cage) Variable overhead cost Fixed overhead cost 35 000 units 25 000 units R138 500 47 000kg for a total cost of R85 110 R430 Favourable 33 426 kg R320.32 Unfavourable R605 800 R112 500 REQUIRED: 5.1 5.1.1 5.1.2 5.1.3 Calculate the following variances, in as much detail as possible, for the quarter: Direct labour variances; Variable overhead variances, and Fixed overhead budget variance. (6) (6) (3) 5.2 (8) Calculate the standard purchase price for the material (Oak) and the standard usage of material (Oak) per unit production of the Deluxe cage

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