Nov 2016 Q4 a.

Jungle Twist Ltd manufactures quality blocks for the housing industry in Ghana. It operates a standard marginal costing system. The following standard costs, volume and revenue data for the quarter ending 31 October, 2015 are provided:

Standard cost card:
Selling price            GH¢18 per block
Costs:
Direct material       P             3 kg at GH¢2.60 per kg
.                               Q             2 kg at GH¢2.50 per kg
Direct labour                         2 hours at GH¢0.60 per hour

Budgeted sales for the quarter: 62,500 blocks
Variable overheads are absorbed at the rate of GH¢0.50 per direct labour hour.
Fixed production overheard for the quarter are estimated to be GH¢78,500
The following actual results were recorded for the quarter just ended 31 October, 2015:
Production                               : 60,000 blocks
Sales                                        : 58,000 blocks
Price                                        : GH¢17.00 per block
Direct material        P               150,000 kg were bought and used at GH¢360,000
.                                Q              109,000 kg were bought and used at GH¢327,000
Direct labour                            108,000 hours were worked for at a cost of GH¢90,400
Variable overheads                   GH¢82,000
Fixed production overheads     GH¢80,000

Required:
Calculate the following variances for the quarter just ended 30 September, 2015 the:
i) Sales volume and sales price variances;                                                                                     (3 marks)

ii) Price and usage variances for each material;                                                                             (3 marks)

iii) Mix and yield variance for each material;                                                                                (3 marks)

iv) Labour rate, labour efficiency and idle time variances; and                                                     (3 marks)

v) Variable overheads expenditure and variable overheads efficiency variances.                          (3 marks)