Question 1 Marked out of 10 Not flaggedFlag question Question text A company manufactures a product called Jest, and the entire product is sold as soon as it is produced. There are no opening or 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 for the product, in the month of October, is as follows: Standard cost for product Jest: Direct materials (0.5 kilos at 4 per kilo) 2.0 Direct wages (2 hours at 2.00 per hour) 4.0 Variable O/Hs (2 hours at 0.30 per hour 0.6 Fixed O/Hs (2 hours at 3.70 per hour) 7.4 Standard cost 14.0 Standard profit margin 6.0 Standing selling price 20.0 Budgeted output for October was 5,100 units. Actual results for October were as follows: 4,850 units were produced and sold for 95,600 Materials consumed in production amounted to 2,300 kilos at a total cost of 9,800 Labour hours paid for amounted to 8,500 hours at a cost of 16,800 Variable overheads amounted to 2,600 Fixed overheads amounted to 42,300 Required Calculate the following variances for the month of October. 1) Material price and usage variances 2) Labour rate and efficiency variances 3) Variable overheads expenditure and efficiency variances 4) Sales price and volume variances