Question 1 Mike and Sons Limited manufacture and sells one product. The company operates a standard costing system. Fixed overheads are absorbed on a labour hour basis. The standard cost card for one unit is as follows: Wool 2 meters at K2.00 per meter Labour 9.6 minutes at K 7.50 per hour Variable overheads K5 per hour Fixed overheads K10.50 per hour Budgeted selling price K 10.00 per unit The company budgeted for 4,800 labour hours for the coming period. The following were the actual results during this period: Actual production and sales 28,000 units. Actual sales revenue K 336,000 Actual quantity of wool bought 60,000 meters costing K 150,000 Actual direct labour hours worked 4,800 hours costing K36,480 Actual variable overheads K 17,000 Actual fixed overheads K 40,000 Required: (a) Calculate all relevant variances in as much detail as possible. [20 marks)