Question 2 Bonus Ltd produces a component called 'BOOM'. The following standard costs apply to the manufacture of 100 units in a batch: S/batch Material 300 kg @ $8.20 per kg 2,460 Skilled labor 240 hours @ $10.00 per hour 2,400 Variable overhead 240 hours @ $9.00 per hour 2,160 Fixed overhead 240 hours @ $12.00 per hour 2.880 9,900 The monthly production and sales budget is 10,000 units. Planned selling price/unit is $150. For the just ended month of March, the following actual data was extracted from the accounting books: Quantity produced and sold Sales value Material purchased and used (35,000 kg) Labor paid (28,500 hours) Labor hours worked Variable overheads Fixed overheads Required: 12,000 units $1,840,000 $300,000 $304,000 28,000 $250,000 $295,000 a) Calculate the variances for material price, material usage, labour rate, labour efficiency, labour idle- time, variable overheads expenditure, variable overhead efficiency, fixed overhead expenditure, fixed overhead volume, sales price and sales volume variance. (20 marks) b) Discuss TWO (2) reasons for the material price and material usage variances that you have calculated above. (5 marks) (Total: 25 marks)