Question 1 Prince Company produces and sells a single product. The standard cost card for the product follows: Direct materials, 4 meters at $3.50 per meter $14.00 Direct labour, 1.5 direct labour-hours at $12.00 per direct labour-hour 18.00 Variable overhead, 1.5 direct labour-hours at $2.00 per direct labour-hour 3.00 Fixed overhead, 1.5 direct-labour hours at $6.00 per direct labour-hour 9.00 Standard cost per unit 44.00 The following additional information is available for the year just completed: a. The company manufactured 20,000 units of product during the year. b. A total of 78,000 meters of material was purchased during the year at a cost of $3.75 per meter. All of this material was used to manufacture the 20,000 units. There were no beginning or ending inventories for the year. c. The company worked 32,500 direct labour-hours during the year at a cost of $11.80 per hour. Overhead cost is applied to products on the basis of standard direct labour-hours. Data relating to manufacturing overhead costs follow: Denominator activity level (direct labour-hours used to calculate POHR): 25,000dihs Budgeted fixed overhead costs: $150,000 Actual fixed overhead costs: $148,000 Actual variable overhead costs: $68,250 Required: A. Compute the direct materials price and quantity variances for the year. B. Compute the direct labour price and quantity variances for the year. C. Compute the manufacturing overhead controllable and volume variances for the year. D. Comment on the results of A to Cabove