QUESTION 3 Ability Square Ltd produced the following standard cost card for its brand of local rice called 'Abena' for the month of October 2019. standars GHe Materials 4kg @ GH$4 per kg 16 Labour 2 hours @ GH$5 per hour 10 Variable overheads 2 hours @ GH$5 per hour 10 Fixed overheads 2 hours @ GH&7 per hour 14 Total standard cost per unit of 'Abena' bag 50 Budgeted production was 14,000 Abena bags for the month at a selling price of GH$65 per Abena bag. During the month, 12,700 Abena bags were produced and sold at GHe 75 per Abena bag. The actual costs were: Aconal GHE Materials 63,500 kg ACP 3 . 8 241,300 Labour 22,860 hours 160,020 Variable overheads 148,590 Fixed overheads 210,000 008 8 759,910 Required: price AQ = (SPX RP ) For each of the cost elements compute the following variances: (i) Direct material price variance AQ = CSPXAPS 1.5 Marks (ii) Direct material usage variance SP= (SQ xAQ ) 1.5 Marks (iii) Direct labour rate variance = AH=(S/R x AYR) 1.5 Marks (iv) Direct labour efficiency variance = SR(SHAH ) 1.5 Marks SR = SHTX (v) Variable overhead efficiency variance = VR CSV#XAVI) 1.5 Marks (vi) Variable overhead expenditure variance 1.5 Marks (vii) Fixed overhead efficiency variance 1.5 Marks (viii) Fixed overhead capacity variance 1.5 Marks FC 7 20 ( @) 7.5