QUESTION 3 Ability Square Ltd produced the following standard cost card for its brand of local rice called 'Abena' for the month of October 2019. Materials Labour Variable overheads Fixed overheads GH 4kg @GHe4 per kg 16 2 hours @GHe5 per hour 10 2 hours @GHe5 per hour 10 2 hours @GHe7 per hour 14 50 Total standard cost per unit of 'Abena' bag Budgeted production was 14,000 Abena bags for the month at a selling price of GH65 per Abena bag. During the month, 12,700 Abena bags were produced and sold at GHe75 per Abena bag. The actual costs were: Materials Labour 63,500 kg. 22,860 hours Variable overheads - Fixed overheads GHe 241,300 160,020 148,590 210,000 759.910 Required: For each of the cost elements compute the following variances: (i) Direct material price variance (ii) Direct material usage variance (iii) Direct labour rate variance (iv) Direct labour efficiency variance (v) Variable overhead efficiency variance (vi) Variable overhead expenditure variance (vii) Fixed overhead efficiency variance (viii) Fixed overhead capacity variance 1.5 Marks 1.5 Marks 1.5 Marks 1.5 Marks 1.5 Marks 1.5 Marks 1.5 Marks 1.5 Marks