B. Blue Emory Ltd. manufactures one product and uses a standard costing system. The standard cost card is available for its product: Timel STANDARD VARIABLE COST CARD ONE UNIT OF PRODUCT Direct materials: 2 pounds x $50 per pound Direct labour: 1.5 hours x $20 per hour Variable overhead: 1.5 hours x $10 per hour Total standard variable cost per unit The company records materials price variances at the time of purchase. The following activities occurred during the month of February: Materials purchased Materials used Units produced Direct labour 3,000 pounds at $48 per pound 2.100 pounds 1,000 units 1,400 hours at $25 per hour $100.00 30.00 15.00 $145.00 Calculate the following variances and Indicate if they are favourable (F) or adverse (A): 1. Material price TAN Material usage Total material Labour rate IV. V VI. Total labour Labour efficiency [2.5 marks] [3 marks] [1 mark] [2.5 marks] [3 marks] [1 mark] C. Provide one (1) possible cause for each of the variances calculated in B above for: L Material price [1 mark] 4 C. Provide one (1) possible cause for each of the variances calculated in B above for: T. Material price [1 mark] Material usage [1 mark] III. Labour rate [1 mark] IV. Labour efficiency [1 mark]