Question 27 At the end of June, the manager of the B.C. manufacturing plant was provided with the following variance analysis report. Favourable (F)/ Actual Variance Unfavourable (U) Budget Production in units 300,000 319,000 19,000 Production costs Direct material $598,309 $611,136 $(12,827) 1,350,000 1,402,195(52,195) 142,124 (7,124) 4,530 $2,225,809 $2,293,425 $(67,616) Direct labour Variable overhead costs 135,000 142,500 Fixed overhead costs 137,970 Total production costs The manager immediately called the production supervisor, demanding an explanation for the large unfavourable variance for the quarter. The production supervisor was puzzled. He thought the cost-cutting measures they had incorporated were beginning to work. He certainly wasn't expecting such a large discrepancy The standard rates the plant was using with its normal costing system are summarized below Volume Cost Direct material Direct labour Predetermined overhead rate: 1.10 kg per unit $1.80 per kg 0.25 hour per unit $18.00 per hour Variable 0.25 hour per unit 0.25 hour per unit $1.80 per hour $1.90 per hour Fixed Other relevant information: 1. 2. 3. A total of 359,000 kg of direct materials were purchased during the quarter at a cost of $1.85 per kilogram. A total of 339,520 kg of direct materials were used in production to manufacture 319,000 units Payroll recorded 78,775 direct labour hours at an average cost of $17.80 per hour. (a1) Calculate the following production variances. Material price variance Material quantity variance Labour price variance Labour efficiency variances Variable overhead variance s