Wiggleys ltd manufactures confectionery products. The following variable cost standards have been set for a packet of product PK which is one of its main products.

Standard

(quantity or hour)

Standard

(price or rate)

Standard cost

Direct materials

?

12

?

Direct labour

?

?

?

Variable manufacturing overhead

?

4

?

Total standard cost

84

During the month of May, 900 direct labor hours were actually worked and 500 units of product PKwere manufactured. The actual cost per unitmanufactured during May was ksh 0.28 higher than the standard cost.

The following costs and variances information relates to the month of May:

Materials used

Direct labour

Variable manufacturing overhead

Total standard cost of production for May

?

16,000

3,200

Actual cost incurred

20,000

?

3,240

Material usage variance

1,200 (A)

Required:

Compute the followings:

a)Total standard cost of materials used for actual production during May.(6 Marks)

b)Standard quantity of materials per unit of product PK.(3 Marks)

c)Materials price variancefor May.(3 Marks)

d)Standard direct labour rate per hour.(2 Marks)

e)Direct labor rate and efficiency variance.(3 Marks)

f)Variable overhead spending and efficiency variance.(3 Marks)