QUESTION 1 40 marks Concita Ltd. uses a standard cost system and sets predetermined overhead rates on the basis of direct labour hours. The company's budget indicates the following data for the current year. Denominator activity Variable manufacturing overhead (10,000 direct labour hours @$3.42) Fixed manufacturing overhead cost Predetermined overhead rate ( $104,200 10,000 direct labour hours) 5,000 units $34,200 $70,000 $10.42 The standard cost card for the company's only product is given below Standard Quantity or hours Standard price or rate Standard cost Per Unit Direct materials Direct labour Variable overhead Fixed overhead 4 kilograms 2 direct labour hours 2 direct labour hours 2 direct labour hours $2.60 per kilogram $8 per direct labour hour $3.42 per direct labour hour $7 per direct labour hour $10.40 16.00 6.84 14.00 $47.24 Total standard cost During the year, the company produced 4,800 units of product and incurred the following costs: Quantity 30,000 kilograms 20,000 kilograms 10,000 hours Amount $81,000 Direct materials purchased Direct materials used Direct labour Variable manufacturing overhead cost Fixed manufacturing overhead cost $86,000 $35,900 $64,800 Required: (a) Prepare the price and quantity/efficiency variances for materials and labour for (b) (c) (d) the year. Prepare an analysis of the rate and efficiency variances for variable overhead for the year. Prepare an analysis of the budget and volume variance for fixed overhead for the year. Based on the results from your analysis above, comment on the cost control efficiency of the company. (20 marks) (5 marks) (5 marks) (10 marks)