Kosasa Company produces and sells one product only, Sobolo, the standard cost for one unit being as follows. GHC Direct material A-10 kilograms at Ghc 20 per kg 200 Direct material B - 5 litres at Ghc 6 per litre 30 Direct wages - 5 hours at Ghc 6 per hour 30 Fixed production overhead 50 Total standard cost 310 The fixed overhead included in the standard cost is based on an expected monthly output of 900 units. Fixed production overhead is absorbed on the basis of direct labour hours. During March the actual results were as follows. Production 800 units Material A 7,800 kg used, costing GHC159,900 Material B 4,300 litres used, costing GHC23,650 Direct wages 4,200 hours worked for GHC24,150 Fixed production overhead GHC47,000 Required: I. a. Calculate price and usage variances for each material. b. Calculate labour rate and efficiency variances. c. Calculate fixed production overhead expenditure. (5 marks) (5 marks) (5 marks) (Total 15 marks) END OF PAPER Examiner: Lazarus Lamptey