QUESTION 2 Standard Costs 20 marks (a) Albert Manufacturing Company manufactures a single produce. The stand cost of one unit of this product is: Direct Materials: 6 metres at $1.50 Direct Labour: 1 hour at $6.75 Variable overhead 1 hour at $4.50 Total Standard Variable Cost per unit $9.00 $6.75 $4.50 $20.25 During the month of October, 6,000 units were produced. Selected cost data relating to month's production flow: Materials Purchased: 60,000 metres at $1.43 Material Used in Production: 38,000 Direct Labour: hours at $? per hour Variable Overhead Cost Incurred Variable Overhead Efficiency Variance $85,000 $41,925 $30,713 $2,250 Unfavoura There was no beginning inventory of raw materials. The variable overhead rate is ba direct labour hours. Required: e the maria prie variance and quanty arace marki