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At the end of June, the manager of the B.C. manufacturing plant was provided with the following variance analysis report. Favourable (F)/ Unfavourable (U) Budget 300,000 Actual 319,000 Variance 19,000 Production in units Production costs: Direct material Direct labour Variable overhead costs Fixed overhead costs Total production costs $598,309 1,350,000 135,000 142,500 $2,225,809 $611,136 1,402,195 142,124 137,970 $2,293,425 $(12,827) (52,195) (7,124) 4,530 $(67,616) The manager immediately called the production supervisor, demanding an explanation for the large unfavourable variance for the quarter. The production supervisor was puzzled. He thought the cost-cutting measures they had incorporated were beginning to work. He certainly wasn't expecting such a large discrepancy. The standard rates the plant was using with its normal costing system are summarized below. Volume Cost 1.10 kg per unit $1.80 per kg 0.25 hour per unit $18.00 per hour Direct material Direct labour Predetermined overhead rate: Variable Fixed 0.25 hour per unit 0.25 hour per unit $1.80 per hour $1.90 per hour Other relevant information: 1. 2. 3. A total of 359,000 kg of direct materials were purchased during the quarter at a cost of $1.85 per kilogram. A total of 339,520 kg of direct materials were used in production to manufacture 319,000 units. Payroll recorded 78,775 direct labour hours at an average cost of $17.80 per hour. (a1) Calculate the following production variances. Material price variance Favourable Material quantity variance Unfavourable Labour price variance Neither favourable nor unfavourable Labour efficiency variance Variable overhead variance LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT