At the end of June, the manager of the B.C. manufacturing plant was provided with the following variance analysis report. Favourable (F)/ Actual Variance Unfavourable (U) Budget Production in units 342,000 360,000 18,000 Production costs: Direct material Direct labour Variable overhead costs Fixed overhead costs $1,057,669 $1,082,928 $(25,259) 1,111,500 1,140,480 (28,980) 188,100 196,522 (8,422) 4,105 $2,536,819 $2,595,375 $(58,556) 179,550 175,445 Total production costs The manager immediately called the production supervisor, demanding an explanation for the large unfavourable variance for the quarter. The production supervisor was puzzled. He thought the cost-cutting measures they had incorporated were beginning to work. He certainly wasn't expecting such a large discrepancy The standard rates the plant was using with its normal costing system are summarized below Volume Cost Direct material Direct labour Predetermined overhead rate: 1.40 kg per unit $2.20 per kg 0.25 hour per unit $13.00 per hour Variable 0.25 hour per unit 0.25 hour per unit $2.20 per hour $2.10 per hour Fixed Other relevant information 1. 2. 3. A total of 511,000 kg of direct materials were purchased during the quarter at a cost of $2.40 per kilogram. A total of 492,240 kg of direct materials were used in production to manufacture 360,000 units. Payroll recorded 89,100 direct labour hours at an average cost of $12.80 per hour (a1) Calculate the following production variances. Material price variance Material quantity variances Labour price variance Labour efficiency variance Variable overhead variance