B) The Eastern Division of Countryside Communications plc assembles a single product, the Beta. The Eastern Division has a fixed price contract with the supplier of the materials used in the Beta. The contract also specifies that the materials should be free of any faults. Because of these clauses in the contract, the Eastern Division has no material variances when reporting any differences between standard and actual production. You have recently accepted the position of assistant management accountant in the Eastern Division. One of your tasks is to report variances in production costs on a four-weekly basis. Fixed overheads are absorbed based on standard labour hours. A colleague provides you with the following data: Standard costs and budgeted production - four weeks ended 27 November Quantity Rate in $ Material 30 meters 12 labor 10 hours 5.25 Fixed Over head 10 hours 15.75 Variable Over head 10 hours 3 Standard Cost per unit 600 Standard Selling Price 650 Budgeted production 1200 Actual production-four weeks ended 27 November Actual cost of Material Actual cost of Labor Actual Cost of Variable Overhead Actual cost of Fixed Overhead Actual Sales Actual production Cost per unit ($) 360 52.5 157.5 30 31200 meter 374400 11440 hours 59488 36000 207000 760000 1040 units Calculate the following variances: (i) the labour rate variance; (Actual rate - Standard rate) x Actual hours worked (ii) the labour efficiency variance; -(Actual hours - Standard hours) x Standard rate (iii) material price variance- (Actual price - Standard price) x Actual quantity (iv) Material usage variance. (Actual quantity - Standard quantity) x Standard cost) per unit