Question 3 Carat, a premium food manufacturer, is reviewing operations for the year of 2019. The company operates a standard marginal costing system and manufactures one product, ZP, for which the following standard revenue and cost data per unit of product is available: Actual data for the twelve-month period was as follows: - Sales and production 48,000 units of ZP were produced and sold for $580,800 - Direct material A 121,951kg were used at a cost of $200,000 - Direct material B 67,200kg were used at a cost of $84,000 - Direct labour Employees worked for 18,900 hours, but 19,200 hours were paid at a cost of $117,120. Required: (a) Calculate the following: (i) Material price and material usage variances for each material. (ii) Labour rate and labour efficiency variances. ( 8 marks) (b) Critically discuss the types of standard used in standard costing and their effect on employee motivation. (4 marks) (Total: 12 marks)