-1+ 75% or Section C. Answer ONE question from this section and ONE further question from either Section B 19. 12 1 : 13 1 . 14 Spacey pic is in the manufacturing industry and it manufactures and sells a product known as GMT. The manager of the department that produces the products created a monthly budget for the product at the beginning of the year, based on 9,000 units of the product being produced and sold. Labour (2 hours x [10.5) E per unit Materials 21 Fixed overhead (450g x [28 per kg) 12.6 O 11 Selling price 64 e However in April, only 8,500 units were actually produced and sold and his actual monthly budget values whe as follows: E E Sales 572,000 Costs: Labour 17,800 hours 202,800 Material 4100 kg 124,700 Fixed overhead 88,000 415,500 + Profit 156,500 Required a. Calculate the following: Material price variance; Material usage variance; Labour price variance; Labour efficiency variance; Fixed overhead variance; Sales price variance; Volume variance (14 marks) b. Discuss the possible reasons relating to the variances you have calculated. (6 marks) (Total 20 marks)