(a)[2]
State two limitations of a standard costing system.
(b(i))[2]
Calculate the variance for material price.
(b(ii))[2]
Calculate the variance for material usage.
(b(iii))[2]
Calculate the variance in labour rate.
(b(iv))[2]
Calculate the variance for labour efficiency.
(b(v))[1]
Calculate the total variance for labour.
(d)[8]
Draw up a reconciliation statement for actual production that links the standard labour and material costs to the actual costs.
(e)[2]
Advise Oscar whether he ought to revise his standard costs. Support your answer with reasons.
(c(i))[1]
Material price variance scenario
(c(ii))[1]
Material usage variance item
(c(iii))[1]
Labour rate variance item
(c(iv))[1]
Labour efficiency variance item