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c) i)

(Actual units sold - Budgeted units sold) x Budgeted price per unit
= Sales volume variance
(336x6 300x6) x 350 =75,600 F
ii) (Actual price - Budgeted price) x Actual unit sales = Selling price variance
(375-350) x 336x6 = 50 400
iii)
Direct
Quantity variance
Price variance
materials
Certificates
(336x6+403 300x6) x 18 = 1.5 x (336x6 + 403) = 3,628.5 U
11,142 U
Manuals
(1.25x2016 1800) x 12 =
2.5 x 1.25 x 2016 = 6,300 F
8,640 U
Logbooks
(1.15x2016 1800) x 8 =
0.1 x 8 x 1.15 x 2016 = 1,854.72
4,147.2 U
U
Tshirt
(1.3x2016 1800) x 15 =
3 x 1.3 x 2016 = 7,862.4 U
12,312 U
iv) Efficiency variance = (336 + 14 300) x 24 x 30 =36,000 U
Rate variance = (32 30) x 350 x 24 = 16,800 U
v)
Direct
materials
Petrol
Advertising
Indirect
materials
Administration
vi)
Direct
materials
Advertising
Rent
Insurance
Depreciation
Other

Quantity variance

Price variance

(336x36 300x30) x 0.8 =


2,476.8 U
(336 300) x 60 = 2,160 U
(138,688 95,400) x 0.2 =
8,657.6 U
(350-300) x 24 x 5.1 =
6,120 U

(336x36) x (1 0.8) = 2,419.2 U

Spending variance
$2,000 F
$9,000 U
$2,000 U
$5,000 F
$1,000 F

(48 60) x 336 = 4,032 F


(0.25-0.2) x 138,688 = 6,935.5 U
(3.4 5.1) x 350 x 24 = 14,280 F