Question 3 a) Standard costing is an important management accounting technique which can benefit all forms of business enterprises if fully understand and operated Required: i. Discuss five (5) benefits of using standard costing ii. Distinguish between a favourable variance and adverse variance as used n standard costing ini. Briefly explain with examples the types of standards used in standard costing b) A company produces and sells one product only. Sobolo, the standard cost for one unit being as follows: GH 200 30 30 Direct material A-10 kilograms at GH 20 per kg Direct material B - 5 litres at GH6 per litre Direct twages - 5 hours at GHC6 per hour Fixed production overhead 50 Total standard cost 310 The fixed overhead included in the standard cost is based on an expected monthly output of 900 units. Fixed production overhead is absorbed on the basis of direct labour hours. During March the actual results were as follows Production 800 units Material A 7.800 kg used, costing GH 159.900 Material B 4,300 litres used, costing GH423,650 Direct wages 4.200 heurs worked for GH24.150 Fixed production overhead GHc47.000 Required (a) Calculate Material total, material price and usage variances for each material. (b) Calculate Labour total, labour rate and efficiency variances () Calculate Fixed production overhead expenditure and volume variances