a) Limited manufactures a single product, the budgeted selling price and variable cost details of which are as follows: Selling price Variable costs per unit: Direct materials Direct labour Variable overhead 15.00 3.50 4.00 2.00 Budgeted fixed overhead costs are 60,000 per annum charged at the cost rate each month. The budgeted production is 30,000 units per annum. In a month when actual production was 2,400 units and exceeded sales by 180 units, calculate the profit reported under absorption costing. MATERIAL IS Q NOT P. TYPOGRAPHIC ERROR 30 Marks b) BNB Ltd uses a standard costing system. The standard cost card for one of its products shows that the product should use 6 kgs of material Q per finished unit, and that the standard price per kg is 6.00. BNB values its inventory of material at standard prices. During November 2020, when the budgeted production level was 4,000 units, 4,200 units were made. The actual quantity of material P used was 24,000 kgs and material Q inventories were reduced by 400 kg. The cost of material Q which was purchased was 139,000. Calculate the material price and usage variances for November 2020. 35 Marks