A company that produces one product and operates a system of variance has the following standard product cost and actual data for the month ended December 31, 2020: 5,000 units Budgeted and standard cost data Budgeted sales and production for the month Standard cost for each unit of product: Direct Material A Direct Material B Direct Labour Cost Fixed production overhead Budgeted selling Price 5kg at .5 per kg 2.5kg at 1.5 per kg 5 hours at 1.5 per hour 8 25 Actual Data Production: Direct Materials consumed of A Direct Materials consumed of B Direct labour Cost 4,750 units sold at 26/unit 24,000kg at 0.60 per kg 12,000kg at 1.35 per kg 23,000 hours at 1.60 per hour 45,000 Fixed production overheads incurred Requirements for question 1: 1- Compute the following: a) Price variance for material A and B b) Usage variance for material A and B c) Labour rate variance d) Labour efficiency variance e) Fixed overhead expenditure variance f) Sales margin price variance g) Sales margin volume variance 2- Discuss the limitations of variance analysis. 3- Discuss what managers can do to achieve good budgetary control