(a)[4]
Prepare a statement showing the total flexed budgeted production costs for March 2019.
(b(i))[2]
Calculate the material price variance for March 2019.
(b(ii))[2]
Calculate the material usage variance for March 2019.
(b(iii))[2]
Calculate the labour rate variance for March 2019.
(b(iv))[2]
Calculate the labour efficiency variance for March 2019.
(b(v))[2]
Calculate the fixed overhead expenditure variance for March 2019.
(b(vi))[2]
Calculate the fixed overhead volume variance for March 2019.
(c)[2]
Explain how a fixed overhead capacity variance may arise in practice.
(d)[5]
Prepare a statement reconciling the budgeted production costs at 7800 units and the actual production costs.
(e)[2]
Explain to the directors one method they could use to minimise the effect of the increase in labour costs.