There are 30 apple trees in the orchard attached to Bill’s farm. Bill reckons that each tree will be given five doses of fertilizer each year at a cost of £4 per tree and that 10 hours of labour will be required to pick the apples from and prune each tree. Workers are paid £7.50 per hour. At the end of the apple picking season, Bill calculates that the 30 trees only received four doses of fertilizer, although these cost £4.50 for each tree, and that the picking and pruning was undertaken at a cost of £8 per hour for 270 hours of labour.

Required

Calculate:

(a) The total expected costs of the orchard for the past year

(b) The actual total costs of the orchard for the past year

(c) Material total, price and usage variances

(d) Labour total, rate and efficiency variances State whether the variances are favourable or unfavourable.