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The monthly budget is per 1,000 cartons. The overhead expenses which are all Fixed are budgeted at sh 40,000 and selling price per 1kg packet of soap is sh 25. the following details relate to October 2007 when 1,200 cartons of soap Were produced and sold Ksh Sales 1,200 cartons 552,000 Raw materials: Tallow 10,800 kgs 129,600 Caustic soda 13200 kgs 198,000 Labour; 26,400 hours 145,200 Fixed overhead expenditure 42,000 REQUIRED: calculate a) Price and usage variances each raw materials. (8 Marks) b) Labour rate and efficiency variances. (3 Marks) c) Sales price and volume variances. (5 Marks) d) Overhead expenditure variances. (2 Marks)
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