Kotoku is one of the products of AP Manufacturing Ltd. The company has the following standard cost and a budget of 10,000 units for production and sales for period 1: Direct material Direct labour Variable overhead GHS (0.05kg @ GHS 100 per kg) 5.00 (0.5 hours @ GHS 24 per hour) 12.00 (0.5 hours @ GHS 18 per hour) 9.00

Actual result for the period was as follows: Production 11,000 units GHS86,000 Direct materials Direct wages Variable overhead Required: 570kg @ GHS 105 per kg 5400 hours @ GHS 20 per hour (a) Calculate the following variances for the product: (i) Material price variance (ii) Material usage variance (iii) Labour rate variance (iv) Labour efficiency variance (v) Variable overhead expenditure variance (vi) Variable overhead efficiency variance