Modern Ltd mass produces plain coffee mugs that are sold to other manufacturers for customizing with their own logos. The company uses a standard costing system. Budgeted monthly production volume is 59,800 coffee mugs. The standard unit cost of a coffee mug per month is as below: Standard Cost Per Unit (S) 0.05 Direct materials Direct labour Manufacturing overhead 0.2 kg @ $0.25 per kg 3 minutes @ $6.60 per hour 0.33 0.18 Variable Fixed 3 minutes @ $3.60 per hour 3 minutes @ $7.80 per hour 0.39 Total $0.95 Actual cost and production information for January 2022 follows: . There were no beginning or ending inventory balances. Actual production and sales were 62,500 coffee mugs. Actual direct materials usage was 11,000 kg at an actual cost of $1,870. . Actual direct labour usage was 197,000 minutes at a total cost of $25,610. Actual total overhead cost was $40,600, of which $29,765 was for fixed overheads. Selling and administrative costs were $95,000. Required: (a) Calculate ALL the possible variances for the year based on the information given. (9 marks) (b) Write journal entries to record ALL variances computed in (a) above (narrations are not required). (10 marks) (c) More Ltd had made the decision to hire more highly skilled workers during Sway Explain how the cost variances could have been affected by this decision. Evaluate the impact of this decision to the company. (11 marks)