Morrison Manufacturing Corp. uses a standard costing system. Data on one of its products, the Z100, for the year ended December 31, 2021, is as follows: Direct materials (20 kilograms x $4/kilogram) Direct labour (1.5 hours x $25/hour) Manufacturing overhead (1.5 hours x $23/hour) $ 80.00 37.50 34.50 $152.00 Approximately 30,000 direct labour hours were budgeted for the year. Total annual fixed overhead was budgeted at $540,000. The budgeted selling price of the product was $230 per unit. Actual results for the year ended December 31, 2021, were as follows: Units produced and sold 21,500 Selling price (per unit) $226 Direct labour hours 32,850 Direct labour cost $804,825 Direct materials purchased (kilograms) 510,000 Average cost of direct materials purchased (per kilogram) $4.05 Direct materials used (kilograms) 435,000 Variable overhead $110,000 Fixed overhead $575,000 Required: Calculate the following variances and provide a brief explanation of why each variance is either favourable or unfavourable: a) Sales volume and sales price variances (4 marks) b) Cost variances: i. Direct materials price and quantity variances (3 marks) ii. Direct labour rate and efficiency variances (3 marks) iii. Fixed overhead budget and volume variances (3 marks)