Question 3 (16 marks) HKT Ltd manufactures different types of metal photo frames in a highly automated facility. The company has adopted a standard costing system. The standard cost per photo frame are: Standard cost per unit Direct material: Aluminum : Copper Direct labour Variable overhead Fixed overhead 4 sheets per unit 3 sheets per unit 7 hours per unit 5 machine hours per unit 5 machine hours per unit $ 8 12 56 15 10 In addition, overhead rates were based on normal monthly capacity (denominator level) of 6,000 machine hours. During 2019, 850 photo frames were produced. Actual fixed overhead was $9,300, actual variable overhead was $11,700 and actual machine hours were 4,175 hours. Other costs actually incurred in 2019 are shown below: Actual quantities and cost of resources used Direct material Aluminum: Copper: 4,000 sheets purchased at $2 each; used 3,500 sheets 3,000 sheets purchased at $4.20 each; used 2,600 sheets Direct labour Regular time: 6,100 hours at $8.50 per hour Required: Evaluate and discuss the performance of HKT Ltd for the year of 2019 by computing appropriate detailed variances for both direct and indirect cost