Given here below is the standard cost for one unit of a certain product: $ Direct material 20 kilograms at $15 per kg 300 Direct wages 8 hours at $10 per hour 80 Fixed production overhead 150 Total standard cost 530 The fixed overhead included in the standard cost is based on an expected monthly output of 1500 units. Fixed production overhead is absorbed on the basis of direct labour hours. During April the actual results were as follows. Production 1300 units Material 17 200 kg used, costing $259,800 Direct wages7,475 hours worked for $80500 Fixed production overhead $200,400 Required

(a) Calculate price and usagevariances for material.

(b) Calculate labour rate and efficiency variances.

(c) Calculate fixed production overhead expenditure and volume variances and then subdivide the volume variance. The traditional approach to product costing and pricing was developed around the time of the Industrial Revolution. Give the characteristics of the then industry and comment briefly on them.