Ewa Ltd makes product Agoyin.

The following information relates to their budget and actual performance for October $2023.$

They planned to use $0\mathrm{.}5$kg of material B to make one unit of product Agoyin. Direct material cost of material B is $2$ per kg$.$ They planned to make $50,000$ units of product Agoyin. Actual output was $55,000$ units of product Agoyin and $28,000$ kg of material B were used costing $47,600.$

Each unit of product Agoyin should take thirty $(30)$ minutes to make, and the standard wage rate is $10$ per hour. Actual total direct labour cost was $344,650$ for $30,500$ hours. Actual variable production overhead cost was $26,535.$ Standard variable production overhead recovery rate was $1\mathrm{.}00$ per labour hour.

Budgeted fixed production overhead was $20,000$ apportioned on the basis of labour hours. Actual fixed production overhead cost was $16,000.$

A$.$ Calculate the material price and usage variances. $[3$ marks$]$

B$.$ Calculate the labour rate and efficiency variances. $[3$ marks$]$

C$.$ Calculate the variable production overhead rate variance. $[2$ marks$]$

D$.$ Calculate the fixed production expenditure variance. $[2$ marks$]$

E$.$ Comment on the possible reasons for each variance calculated $($in A$-$D$)$ and suggest how the adverse variances can be avoided. $[10$ marks, $1$ mark for each logical comment$]$

SHOW ALL WORKINGS FOR A$-$D$.$