At the end of June, the manager of the B.C. manufacturing factory was provided with the following variance analysis report. Budget Actual Favourable (F) Unfavourable (U) Variance 334,000 349,000 15,000 F $707.183 $(8,154) U Production in units Production costs: Direct material Direct labour Variable overhead costs Fixed overhead costs Total production costs $699,029 1,586,500 133,600 1,623,380 (36,880) U 138,171 (4,571) U 200,400 195.845 4,555 F $2,619,529 $2,664,579 $(45,050) U 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 factory was using with its normal costing system are summarized below. Volume Cost Dirsst material 1.39 kp nerunt $160 nere 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 factory was using with its normal costing system are summarized below. Volume Cost 1.30 kg per unit $1.60 per kg 0.25 hour per unit $19.00 per hour Direct material Direct labour Predetermined overhead rate: Variable Fixed 0.25 hour per unit $1.60 per hour 0.25 hour per unit $2.40 per hour Other relevant information: 1. 2 A total of 461.000 kg of direct materials were purchased during the quarter at a cost of $1.80 per kilogram. A total of 441.990 kg of direct materials were used in production to manufacture 349,000 units. Payroll recorded 86,350 direct labour hours at an average cost of $18.80 per hour. 3. Other relevant information: 1 2. A total of 461,000 kg of direct materials were purchased during the quarter at a cost of $1.80 per kilogram. A total of 441,990 kg of direct materials were used in production to manufacture 349,000 units. Payroll recorded 86,350 direct labour hours at an average cost of $18.80 per hour. 3. (1) Calculate the following production variances. Material price variance Material quantity variance > Labour price variance Labour efficiency variance Variable overhead variance