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MacDowell Company manufactures 100 kg bags of fertilizer that have the following unit standard costs for direct materials and direct labour: Direct materials (100 kg

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MacDowell Company manufactures 100 kg bags of fertilizer that have the following unit standard costs for direct materials and direct labour: Direct materials (100 kg @ S1.00 per kilogram $100.00 Direct labour (0.5 hours at $24 per hour) 12.00 Total standard direct cost per 100 kg bag $112.00 The following activities were recorded for October: -1.000 bags were manufactured. H102,500 kg of materials costing $101.000 were purchased and used H$12,000 was paid for 475 hours of direct labour. Required: A Compute the direct materials variances. (10 marks) B.Compute the direct labour variances. (10 marks) C. Give possible reasons for the occurrence of cach of the preceding variances. (10 marks

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