At the end of June, the manager of the B.C. manufacturing factory was provided with the following variance analysis report Favourable Unfavourable cu Budget Actual Variance Production in units 334.000 349,000 15.000 F Production costs Direct material $699.029 $707.183 $18.1541 U Direct labour 1.5863500 1623.380 (36.880 U Variable overhead costs 133.600 138. 171 (4.571) Find overhead costs 200 400 195,845 4555 F Total production costs $2619,529 $2.664.579 $145,0501 U The manager immediately called the production Supervisor, demanding an explanation for the large unfavourable variance for the quarter. The production supervisor was purzled. 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 Direct material 130 kg per unit $1.60 per kg Direct labour 0.25 hour per unit $19.00 per hour Predetermined overhead rate: Variable 0.25 hour per unit $1.60 per hour Fixed 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. (a1) Calculate the following production variances. Material price variance $ 88398 Unfavourable Material quantity variance $ 18736 Favourable Labour price variance $ 17270 Favourable Labour efficiency variance $ 17100 Favourable Variable overhead variance $ 1440 Favourable