YONA BRANDS GROUP PLANS TO MANUFACTURE AN ORGANIC PRODUCTS AND THE FOLLOWING INFORMATION IS APPLICABLE

Yona Brands manufactures products sold in 5 litre containers, recently the company adopted the following material standard for one 5 litre of its organic skin care products

Direct materials (128 grams @R0.03 per gram) = R3.84

During the first of operation, the company experienced the following actual results

• 5 litre units produced = 40 000
• Grams of direct materials purchased and used 5 200 000 grams at R0.04 per

gram

• There was no operating or closing inventories of raw materials

Required:

1. 2.1 Calculate the material issue price variance (5)
2. 2.2 Calculate the material quantity variance (5)

Motorite Enterprises produces motors for the motor cycles. During the year 110 000 motors were produced The actual labour was 60 000 hours at R9.50 per hour

Motorite Enterprise has the following labour standard : 0.5 hours @R10

Required :

3. 2.3 Calculate the labour rate variance (5)
4. 2.4 Calculate the labour efficiency variance (5)