Question 4 (15 marks) Alpha Corp is producing two products Product A & Product B, the production requires two production phases - Casting & Smoothing. Each production uses the same two materials R1050 & T684. The company uses a standard costing system, with the following standards: Materials 1684 2.5 litres 3.4 liters R1050 1.6 kgs 4.0 kgs Standard Labour Time Casting Smoothing 0.25 hours 0.75 hours 0.40 hours 0.95 hours Product A Product B Materials Purchased during the year related to production Purchases Purchases Cost Standard Price R1050 13,500 $50,000 $3.50/kg T684 17,000 $22,000 $1.50/litre Used in production 40,250 16,250 1. Alpha Corp recognizes price variances when materials are bought 2. The standard labour rates is $19.60/hour in Casting & $19.40/hour in Smoothing 3. In September, 1,100 direct labour hours were worked in Casting at a total labour cost of $21,500 & 2,470 direct labour hours were worked in Smoothing at a total labour cost of $54,000 4. Production totals for Product A were 1,850 & Product B was 2,550 Requirements: 1. Prepare a standard cost card for both products (A & B), showing both direct materials & direct labour 2. Compute the materials price & quantity variances for each material 3. Compute the labour rate and efficiency variances for each operation (casting & smoothing)