Liverpool Manufacturing Limited developed the following standard costs for direct material and direct labour for one of their major products, the 45 litres heavy-duty plastic container. Each container requires the following: Types of Cost Standard quantity Standard price Direct materials 0.2 kilos £30 per kilo Direct labor 0.1 hours £17 per hour During June, Liverpool Manufacturing Limited produced and sold 10,000 containers using 2,100 kilos of direct materials at an average cost per kilo of £25 and 1,100 direct labor hours at an average wage of £16 per hour. Required: a) Calculate the following variances for June: į Direct material price variance ii. Direct material quantity variance iv. Direct labour rate variance v. Direct labour efficiency variance b) Briefly comment on the material and labor variances calculated in a) c) Evaluate the importance of standard costing in budgeting process within firms

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-deter…