2 Question 3 (18 marks) March Ine produces and sells one product. The budgeted (standard) cost for one unit follows: WNBYWN Budgeted Cost per unit of output Direct materials S kg @ $1.50 per kg Direct Labour 4 hrs @ $15.00 per hour Factory overhead (allocated based on direct labour hours) Variable 4 hrs @ $5.00 per hour Normal activity per month 8,000 direct labour hours The actual data for the current month is: Units produced and sold 1.800 units Direct materials purchased 10,200 kg @ $1.48 per kg Direct materials used 9,500 kg Direct labour costs for the month $122,100 Direct labour pay rate $16.50 per hour Actual hours 7,400 hours Total variable overhead costs $26.000 REQUIRED: Calculate the following variances. You must correctly identify the amount of the variances and if they are F 21 (favorable) or U(unfavorable). 1 Static Budget Variance 2 Flexible Budget Variance 3 Sales Volume Variance 4 Direct material rate variance 5 Direct material efficiency variance 6 Direct labour rate variance 7 Direct labour efficiency variance 8 Variable overhead rate variance 9 Variable overhead efficiency variance COVER PAGE Question 1 Question 2 Question 3 Question 4