Answer One $(1)$ Question from Section B Question $4$ Kam Limited manufacture a single product and operates a standard costing system. The following data is available: Budgeted Data $($per unit$)$: Materials $10$kgs Material cost per kg $11\mathrm{.}50$ Labour $6$ hours Labour cost per hour $8\mathrm{.}00$ Budgeted production for August was expected to reach $10000$ units, however $9500$ units were actually produced. The actual costs incurred were as follows: Materials Labour Required: $94000$ kgs at $12\mathrm{.}00$ per kg $50000$ hrs at $8\mathrm{.}50$ per hr $1)$ Calculate the following variances and indicate if the variances are favourable or unfavourable: a$)$ material price b$)$ material usage c$)$ total material variance d$)$ labour rate e$)$ labour efficiency f$)$ total labour variance g$)$ total variance $(2$ marks for a$)$ to f$),1$ mark for g$),$ total $13$ marks$)2)$ Suggest possible reasons for the material and labour variances calculated. $(5$ marks$)3)$ Define and briefly explain four $(4)$ limitations of a standard costing system. $(4$ marks$)4)$ In standard costing there are three different levels of standard cost. Briefly explain these different levels.