Elso Ltd ("Elso") manufactures large-scale solvents for factories and household cleaning. The company uses standard costing system as a way of monitoring its cost. The following information is available for Elso for the month of July 2022: Budgeted Sales and production volume Standard selling price per barrel Standard variable cost per barrel Actual Sales and production volume Actual selling price per barrel Actual variable cost per barrel Additional information: 600 barrels N$1 750 N$855 620 barrels N$1690 N$863 Standard cost card for one barrel of solvent Direct materials Direct labour Variable overheads 34 litres @ N$15 per litre 15 hours @ N$12,50 per hour 15 hours @N$10,50 per hour NB: Overheads are absorbed on the basis of direct labour hours. Actual cost and usage information Total usage Direct materials 20 410 litres Total cost (NS) N$321 500 Direct labour 9 420 hours N$117 800 Variable overheads ? N$95 600 REQUIRED: Calculate the following variances and indicate whether the variance obtained is favourable or unfavourable 2.1 Material price variance 2.2 Material usage variance 2.3 Labour rate variance 2.4 Labour efficiency variance 2.5 Variable overheads expenditure variance Marks Sub- total Total 33333 36925 12 15 2.6 Variable overheads efficiency variance 2.7 NT AND LAWA Explain the possible causes of the type of variance obtained in 2.1 and 2.3? TOTAL MARKS 3 18 2 20 20 20