(a)[2]
State what is meant by standard costing.
(b(i))[4]
Work out the material price variance and material usage variance for the year ended 31 August 2015.
(b(ii))[8]
Work out the labour rate variance and labour efficiency variance for the year ended 31 August 2015.
(c)[4]
Draw up a statement reconciling the budgeted costs and the actual costs for the year ended 31 August 2015.
(d)[6]
Discuss possible reasons for the difference between Khalid’s actual costs and the budgeted costs.
(e)[5]
Recommend to Khalid which option or options he should choose. Support your answer with reasons.