Q1. Fake Corporation makes Cricket Wickets, a device to remove unwanted noisy insects from your basement. The master budget for production costs for next year was based on expected production of 100,000 Wickets using 25,000 direct labor hours. Overhead is applied on the basis of direct labor hours. The budget formula for overhead is: Overhead = INR 125,000 + INR 4 per standard direct labor hour. Amount The material and labor standards are given below. Heads Details Direct material 2 pounds per unit @ INR 0.75 per pound Direct Labour 0.25 hours @ INR 8.00 per hour Overheads 0.25 hours @ INR 9.00 per hour Total standard cost INR 1.50 INR 2.00 INR 2.25 INR 5.75 Also assume that 105,000 actual units were produced, and the overhead application rate was based on the master budget volume of 100,000 unit or 25,000 hours. Actual costs were as follows: 220,000 of material were purchased for INR 0.80 per pound, and 212,000 pounds were used in production. 27,000 hours of direct labor were used, and the pay rate was INR 8.25 per hour. Actual overhead was INR 228,900. . a) Calculate the material price and volume variance b) Calculate the labor rate and efficiency variance c) Calculate the overhead variance and the overhead volume variance. (15 marks]