You are required:

a. To calculate direct material price variance, quantity variance and total direct material variance. (5 marks)

b. To calculate direct labour rate variance, efficiency variance and total direct labour variance. (5 marks)

c. To calculate variable overhead spending variance, efficiency variance and total variable overhead variance. (5 marks)

d. To comment on the direct material & direct labour variance. (5 marks)

MASKING is a producer of student-mask for universities and has the following information for the standard and actual costs: Estimated activity & standard cost per unit The factory estimated that it would require 3 meters of material per unit of mask at an expected cost of RM10.00 per meter. It also estimated to use 5 direct labour hours per unit and estimated to pay wages at a rate of RM8.00 per hour. The standard variable overhead rate estimated were RM6.00 per hour. Actual activity & cost The factory manufactured 20,000 student-mask. The factory purchased and used 58,000 meters of material at total cost of 591,600. The factory used 104,000 direct labour hours and paid at a total wage of RM842, 400. The total variable cost incurred was RM676,000. MASKING allocates its overhead on the basis on direct labour hours