Question 2 You have recently been employed as the cost accountant of BANDAM Industries. They operate on a standard costing system, allocating overheads on labour hours. The following information has been presented to you: Actual for December 55,200 Direct Materials Cost Direct Materials Quantity Direct Labour Cost Direct Labour hours Variable Man Overheads Cost per kg for materials Production (units produced) Budgeted for the YEAR 600,000 300,000kg 720,000 240,000hrs 960,000 59,460 19,900hrs 79.080 2.30 49.500 units 600,000 units Required: a) Calculate the Materials Variances for December. (30%) b) Calculate the Labour Variances for December. (30%) c) Calculate the Variable Manufacturing Overheads Variances for December (20%) d) Discuss the possible reasons for the above variances. (20%)