(a)[6]
Calculate the total standard cost of the July actual output.
(b)[3]
Calculate the total actual production cost for July.
(c(i))[2]
Calculate the direct labour rate variance.
(c(ii))[8]
Calculate the direct labour efficiency variance.
(c(iii))
Calculate the fixed overhead expenditure variance.
(c(iv))[8]
Calculate the fixed overhead volume variance.
(d)[4]
Prepare a statement that reconciles the total standard cost of actual production for July with the total actual cost of production. Your statement should begin with the total standard cost of actual production.
(e)[4]
Advise the directors whether or not they are right to absorb fixed overheads on the basis of direct labour hours. Support your response.