Question 4 10 Marks 25 Minutes 2 Appletons Inc. produces medical devices for hospitals in Ottawa. The company currently utilizes a standard costing system. Below outlines the standard 3 cost for House's most popular product, the heart monitor. Quantity Required for One Monitor Standard Rate/Price 5 Direct Materials 3.0 kg 12.00 per kg 6 Variable Manufacturing Overhead 3.0 hours 6.00 per hour Direct Labour 2.0 hours ur 18.00 per hour 18 Fixed Overhead 1.5 hours S 9.00 per hour 10 Overhead is allocated based on direct labour hours and the average production volume of 20,000 heart monitors. This currently utilizes 90% of the maximum capacity. 11 12 Below is information related to the February 2022 production, in which 21,000 monitors were produced: 13 14 Quantity Cost 15 Direct Materials purchased 70,000 860,000 16 Direct materials used 68,000 835,040 17 Direct Labour 39,000 S 690,000 18 Variable Overhead $ 200,000 19 Fixed Overhead $ 125,000 20 21 REQUIRED 22 A) Calculate the standard quantity of materials needed to make 21,000 monitors (1 mark) 23 B) Calculate the standard quantity of labour-hours needed to make 21,000 monitors (1 mark) 24 C) Calculate the Direct Materials Price Variance (2 marks) 25 D) Calculate the Direct Materials Quantity Variance (2 marks) 26 E) Calculate the Direct Labour Efficiency Variance (2 marks) 27 F) Calculate the Variable Overhead Spending Variance (2 marks)