3 Jato Ltd produces and sell a special product called Jata Cement. The standard cost of the product is as follows: Direct Material (3kg @ GH10) Direct Labour (2hrs @ GH15) Variable Overhead (2hrs @ GH5) Fixed Overhead (2hrs @ GH6) Total Unit cost Additional information: Projected production and sales units are 2,500 and 2,250 respectively. The standard selling price is GH120. Actual performance is presented as follows: Production units Sales @ GH125 Bought and used 5,625kg of Direct material 4,500 Direct labour hours Variable overheads Fixed Overhead Required: A) Determine the following 2,250 GH2,150 GH53,437.50 GH 63,000 GH 24,750 GH30,000 30 30 10 12 82 i) Material Price Variance ii) Material Usage Variance iii) Total material variance iv) Labour Rate Variance v) Labour Efficiency Variance vi) Total labour variance vii) Variable overhead expenditure variance viii) Variable overhead efficiency variance ix) Sales price variance x) Sales volume variance B) i) What is variance analysis? ii) Mention three causes of material variance