FORMATIVE ASSESSMENT-PRACTICE TEST TIME ALLOWED-30 MINUTES Princess Ltd manufactures boxes of chocolates. The standard cost card for 1 box of chocolates based on budgeted sales of 1,000,000 boxes is as follows: Item Description Direct material-chocolate 50g at 1 per kg 0.05 Direct material-caramel 200g at 5 per kg 1.00 Direct labour 0.5 hours at 8 per hour 4.00 Fixed overheads 3 per labour hour 1.50 Total cost 6.55 Selling price 7.95 Actual costs of sales of 1,200,000 boxes: Item Description Direct material-chocolate 66,000kg 99,000 Direct material-caramel 270,000kg 1,417,500 Direct labour 400,000 hours 3,500,000 Fixed overheads 1,800,000 Total cost 6,816,500 8.45 Selling price (per box) Required: a) Calculate the following variances: . Sales price variance Sales volume variance Materials price variances . Materials usage variances Labour rate variance Labour efficiency variance Fixed overhead expenditure variance (18 marks)