Giao Son Ltd produce wooden furniture, which it sells in a variety of retail outlets. The business operates under a marginal costing system and uses standard costing techniques to control its short term performance. One of its products is a Large Round Table. This product has the following standard cost card. Standard Cost Card Large Round Table Materials at 55 per square metre 165 Labour at 15 per hour 30 Total variable cost 195 Budgeted sales of Large Round Tables for November 2020 were 220 units at 490 each. The business expects total monthly overheads to be 237,000. The management accountant reviewed the actual performance for November 2020 and produced the following information based on sales of 237 Large Round Tables. Sales revenue 114,945 Materials (830 square metres) 39,200 Labour (440 hours) 6,820 Actual fixed overheads were 275,000. There was no opening or closing stock of the finished product. REQUIRED a) Calculate: i. the sales price variance and sales volume variance, ii. the material usage variance and material price variance, iii. the labour efficiency variance and labour rate variance, iv. the fixed overhead expenditure variance. (15 marks) b) Write a report to senior management explaining what each of the sales, labour and material variances mean, suggest one reason why each of these might have happened, which should include a comment on whether there was any interdependence between the variances.