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 4 sheets per unit 8 : Copper 3 sheets per unit 12 Direct labour 7 hours per unit 56 Variable overhead 5 machine hours per unit 15 Fixed overhead 5 machine hours per unit 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: Direct material Aluminum: Copper: Direct labour Regular time: Actual quantities and cost of resources used 4,000 sheets purchased at $2 each; used 3,500 sheets 3,000 sheets purchased at $4.20 each; used 2,600 sheets 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