A limited company operates a system of standard costing. The following information is available for the month of July 2015 1. Actual cost data ksh. Direct material purchased (36000kgs) 1,890.000 Direct wages (6800 hours) 2,210,000 Variable production overheads 620,000 Fixed production overheads 1,880,000 Output during the period was 3500 units of the product The standard production units were budgeted at 4800 units The standard cost data per unit is as follows: Direct materials purchased (sh 500 per kg) 500 Direct wages (2 hours) 600 Variable production overheads 200 Fixed overhead overheads 400 Total 1700 5. Labour records show 6200 hours were worked 600 hours were recorded as idle time due to machine breakdown Required: i) direct material cost. ii) labour cost variance iii) variable overheads cost variance iv) fixed overhead expenditure variance

In march 2012, the state of california started requiring that all packaging for food and drink with the additive 4-methylimidazole (4-mi) be clearly labeled with a cancer warning. because of this, both pepsi and coke changed their formula to eliminate 4-mi as an ingredient. if pepsi and coke did not change their formula, holding all else constant, what would have happened to the demand for these goods, assuming pepsi and coke were in a competitive market? a. the demand curve for both pepsi and coke would have shifted to the right, causing the price of both products to decrease and the profits for the companies to fall. b. the demand curve for pepsi and coke would have remained unchanged, but the price of both products would have decreased and the profits for the companies would have fallen. c. the demand curve for pepsi and coke would have decreased, but the prices and profits would not have changed. d. the demand curve for only one of them would change because pepsi and coke are substitutes. e. the demand curve for pepsi and coke would have shifted to the left, causing the price of both products to decrease and the profits for both companies to fall.