Use the information provided below to calculate the following variances. In each case state whether the variance is favourable or unfavourable.

5.1

Materials issue price variance

(Actual price Standard price) X Actual quantity issued

(3 marks)

5.2

Materials quantity variance

(Actual quantity Standard Quantity) X Standard price

(3 marks)

5.3

Total labour variance

= (Actual hours X Actual rate) (Standard hours X Standard rate)

(3 marks)

5.4

Variable overheads efficiency variance

(Actual labour hours worked Standard hours allowed for actual production) X Standard rate

(3 marks)

5.5

Variable overheads expenditure variance

(Actual rate Standard rate) X Actual hours worked

(3 marks)

5.6

Fixed overheads volume variance

Budgeted fixed overheads Standard fixed overheads

Workings (if any)

(3 marks)

5.7

Sales price variance

= (Actual selling price Standard selling price) X Actual quantity sold

INFORMATION Zebcom Manufacturers makes and sells a single product. The company operates a standard costing system. Details of the budgeted and actual data for 2022 are as follows