(a)[2]
State any two benefits of variance analysis.
(b(i))[2]
Calculate the following variances: sales price variance.
(b(ii))[2]
Calculate the following variances: sales volume, as an indicator of the change in profit.
(b(iii))[2]
Calculate the following variances: total direct material variance.
(b(iv))[2]
Calculate the following variances: total direct labour variance.
(b(v))[2]
Calculate the following variances: total fixed overhead variance.
(c)[6]
Explain the likely reasons behind the direct labour total variance worked out in (b)(iv). Support your answer by calculating other relevant variances.
(d)[7]
Advise the directors on whether they should switch to the new supplier. Support your answer with relevant calculations.