CC-chem co manufactures a single product, product W, and have provided you with the following information which relates to the period which has just ended.

Question

Standard cost per unit of product W
Materials:
Materials Price per kilo total
Kilos $ $
F 15 4 60
G 12 3 36
H 8 6 48
35 144
Labour: Rates per hour
Hours $
Department P 4 10 40
Department Q 2 6 12
196
Budgeted sales for the period are 4,500 units at $ 260 per unit. There were no budgeted opening or closing inventories of product W.
The actual materials and labour used was as follows
Materials:
Materials price per kilo total
Kilos $ $
F 59,800 4.25 254,154
G 53,500 2.80 149,800
H 33,300 6.40 213,120
Labour hours rate per hour
Department P 20,500 10.60 217,300
Department Q 9.225 5.40 51.660
4,100 units of product were produced and sold for $1,115,800.
Required
a) Calculate the following material variances
i) Material price variances
ii) material Mix variances
iii) Material usage variances.
iv) material Yield variances
b) Calculate the following labour variances for each of the production departments
i) Labour Cost
ii) Labour Efficiency
iii) labour Rate
c) Calculate the sales variances
d) Comment on your findings to help explain what has happened to the yield variance