3 a) Jamey Plc has prepared the following standard cost information for one unit of product Jamey. Direct materials Direct labour Fixed overheads 4kg @ 10/kg 2 hours @ 4/hour 3 hours @ 2.50 The fixed overheads are based on a budgeted expenditure of 82,500 and budgeted activity of 30,000 hours. Actual results for the period were recorded as follows. Production 9,000 units Materials Labour Fixed overheads 33,600 kg (340,000) 17,500 hours (70,500) 80,000 Required: i. Calculate direct material price and usage variances 25 Marks ii. Calculate direct labour rate and efficiency variances 25 Marks iii. Calculate the total fixed production overhead variance 20 Marks b) For each of the five variances calculated in (a) above, provide plausible reasons why Jamey Plc may experience a favourable or adverse variance. 30 Marks Total 100 Marks