Question 2 Production Variances {19 MARKS) Not One Iota is a New Zealand company that makes gas bottles for the domestic market. It uses standard and normal costing in order to assess its day-to-day performance and product costing. It isolates materials price variances at the time of purchase and materials quantity variances at the time of production. Not One Iota's production standards for the month of June 2020 are shown in Exhibit 3. Exhibit 3 Production Standards for the Month of June 2020 | .nufacturing overhead $17945 + $2.70/hour | ormal volume 3,885 hours In June 2020, $41,520 of material was purchased with each kilogram costing $3.46. 500kg of materials were in ending inventory at 31 May 2020 and they had also been purchased for $3.46/kg. Not One Iota produced 3500 gas bottles in June and in doing so incurred $59,136 of labour and $26,376 of manufacturing overhead and used 11,000kg of materials. Some new employees were engaged in June and the labour rate per hour was 3.75% less than budgeted. Required: (a) What is the standard cost for each gas bottle? (3 marks) (b) What is the actual cost for each gas bottle in June 2020? (I mark) (c) Calculate the input production variances for June 2020 in as much detail as possible. (12 marks) (d) Discuss your results for (a) and (b) with reference to your analysis in (c)