Question 3 (20 marks) Magic Ltd is a company producing essential components for the mobile phone industry. The company's main product is called Leba which is distributed to mobile phone manufacturers all over the world. The company is using a standard costing system for planning and control purposes. The standard cost per unit and budget information for Leba are provided below: Direct material Direct labour 6 kgs@$5 per kg $30 2 hrs @$12 per hr $24 Variable overhead 2 hrs @ $14 per hr $28 Fixed overhead 2 hrs @$7 per hr $14 Standard production costs per unit $96 Budgeted production for last month (units) 10,000 Budgeted sales price per unit $150 $140,000 Budgeted fixed overhead per month At the end of last month, the following actual production and sales data were recorded in the accounting system. Units produced and sold Sales revenues Direct material Direct labour Variable overbead Fixed overhead 9,500 $1,472,500 $293,607 (57.570 kgs) $237,006 $281,960 (18,810 hrs) $138.200 Required: For the purpose of preparing the monthly performance report for this month, calculate the following 10 variances for production costs and sales: Direct material price variance (DMPV) Direct material quantity variance (DMQV) Direct labour rate variance (DLRV) Direct labour efficiency variance (DLEV) Variable overhead spending variance (VOHSV) Variable overhead efficiency variance (VOHEV) Fixed overhead budget variance (FOHBV) Fixed overhead volume variance (FOHW) Sales price variance (SPV) -Sales volume variance (SW) based on budgeted sales price 12 marks each x 10 variances 20 marks)