Q1. A company manufactures one product, the entire product is sold as soon as it is produced. There are no opening and closing inventories and work in progress is negligible. The company operates a standard costing system and analysis of variances is made every month. The standard cost card of the product Beanie is as follows: Direct Materials -0.5 kg at $6 per kg Direct Labor-3 hours at $2 per hour Variable Overheads -2 hours at $0.50 per hour Fixed Overheads-2 hours at $3.50 per hour Total standard cost $ 3 6 1 7 17 Budgeted output for August was 6,100 units. Actual results for August were as follows: Production of 5,500 units was sold for $98,000. Materials consumed in production amounted to 2,500 kg at a total cost of $12,900 Labor hours paid for amounted to 8,600 hours at a cost of 17,800 Actual operating hours amounted to 8,100 hours Variable overheads amounted to $3,850 Fixed overheads amounted to $43,000 Required: Calculate all Cost Variances. (Total marks 6)