Owen limited uses a standard costing system. The standard cost card for one product is shown below.
Direct material 4kg @$5 per kg 20
Direct labour 2 hour @ $8 per hour 16
Variable overhead 2 hours @ $3.5 per hour 7
Total variable cost 43
Fixed overhead 2 hours @ $7 per hour 14
Total production cost 57
Standard selling price 70
Standard profit margin 13
The budgeted output and sales was 1000 units. Actual production and sales for the period were 1300 units.
Actual cost and revenue were as follows.
Direct material 5000 kg costing 22,700
Direct labour 2,850 hours costing 21,500
Variable overhead 7,800
Fixed overhead 14,600
Sales revenue 1,300 units @ $68 88,400
Required:
Calculate the following variances
1. Material usage and price 2. Labour efficiency and rate 3. Variable overheads efficiency and expenditure 4. Fixed overhead efficiency, capacity and expenditure 5. Sales price and sale volume