A). Givers Builders is a paint manufacturer that produces a range of paints, which it sells to wholesale and retail outlets with Accra and Tema. The standard material cost for 100 litres of oil paint is given below: Raw Material Volume (Litres) Standard cost per litres (GHS) Standard cost (GHS) U 280 14 3920 V 270 12 3240 W 80 36.5 2920 X 420 26 10920 Y 100 20 2000 Total 23000 During the month of May, Givers produced 80,000 liters of oil paint using the following raw materials: Raw Material Volume (Litres) Actual cost per litre (GHS) U 28000 15 V 27000 13 W 10000 40 X 19000 25 Y 11000 20 95000 For the purpose of efficiency, Givers Builders employs skilled labour to operate the plant that converts raw materials used to manufacture the paint into the finished product. The standard direct labour hours for each 1000 litres of oil paint produced are as follows: 10 direct labour hours at GHS 25 per hour. During the month of May, 6400 direct labour hours were worked at a total cost of GHS 185, 000. Required: i. Compute the material cost variance for each raw material[10 marks] ii. What is the labour rate and labour efficiency cost variances[6 marks] iii.State four factors that a company would need to consider before deciding whether to investigate a variance. [6 marks] iv. Explain how standard costing can be differentiated from budgetary control [8 marks] B) I) Under the classification of cost as variable of fixed for decision making, many are of the opinion that fixed costs are irrelevant whereas variable costs are relevant cost. Is such an opinion valid? [6 marks] II) The data below shows the forecast cost of production for the coming year for Mako-Mako at varying levels of production. Expected units of production 160000 180000 200000 Direct material GHS 320,000 GHS 360,000 GHS 400,000 Direct Labour GHS 880,000 GHS 900,000 GHS 1000,000 Overheads GHS 1400,000 GHS 1540,000 GHS 1680,000 The cost function in the above data applies up the forecast value of 350,000 units of production per annum. Required: i) Estimate the unit for each cost element including variable cost per unit and total fixed overhead. [10 marks] ii) Determine a total cost function for Mako-Mako and the highest under maximum anticipated production [4 mark]