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3.1       The standard cost of material for Product X for the first quarter of 2019 was: 4...

3.1       The standard cost of material for Product X for the first quarter of 2019 was:

  • 4 kg material at R20 per kg
  • 22 000 kg of material was purchased at R22 per kg
  • The actual production of Product X for the third quarter of 2019 was 5 000 which used 22 000 kg

Calculate the following variances:

3.1.1 Raw material price variance                                                                                                      (4)

3.1.2 Raw material usage variance                                                                                                    (4)

3.2       Explain the most likely reasons for the material price and usage variances

calculated in 3.1                                                                                                                      (3)

3.3       Discuss three (3) advantages of budgeting for businesses.  

Business   Accounting   
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