QUESTION 1 Andes Ltd. produces and sells a product for the treatment Covid-19 called ASONA, the standard cost for one unit being as follows. Item Quantity Amount (GHS) Direct Material A 10 kilograms @ GHS20 per kg 200 Direct Material B 5 litres @ GHS6 per litre 30 Direct Wages 5 hours @ GHS6 per hour 30 Fixed production 50 overhead Total standard cost 310 The fixed overhead included in the standard cost is based on an expected monthly output of 900 units. Fixed production overhead is absorbed on the basis of direct labour hours. During March the actual results were as follows. Production 800 units Material A 7,800 kg used, costing GHS 159,900 Material B 4,300 litres used, costing GHS23,650 Direct wages 4,200 hours worked for GHS24,150. Fixed production overhead GHS47,000 Required: a. Calculate price and usage variances for each material. (10 marks) b. Calculate labour rate and efficiency variances. (5 marks) c. Calculate fixed production overhead expenditure. (5 marks) (Total 20 marks)