a)The Walter Group provides the following data for June 2019 when 15,000 units were manufactured.

Standard Material cost (per Unit)8.50kg @ $7.50 per Kg.

Actual Material cost (Per Unit) 6.75Kg @ $13.5 per Kg.

Standard Labour cost (Per Unit) 5.5hrs @ $15 per hour

Actual Labour cost (Per Unit) 6.5hrs @ $12.2 per hour

Calculate the following:

1.Direct Material Variance

2.Direct Material Quantity/Usage Variance

3.Total Material Cost Variance

4.Direct Labour rate Variance

5.Direct Labour efficiency Variance

6.Total Labour Cost Variance

b)Calculate variable overhead spending variance if actual labour hours used are 260, standard variable overhead rate is $10.40 per direct labour hour and actual variable overhead rate is $9.30 per direct labor hour. Also specify whether the variance is favorable or unfavorable.