Question 5 (a) Ali Plc make a product for which the standard costs are: Sales Price 31 Direct labour (2 hours) 11 Direct materials (1 Kg) 10 Fixed Overhead Standard Profit 7 The budgeted output for September 2017 was 1,000 lights the actual output was 1,100 units which sold for 34,950. No stocks were left at the end of the month. W The actual production costs were: 12,210 Direct Labour (2,150 hours) Direct Materials (1,170 kg) 11,630 Fixed Overheads 3,200 Required: Calculate the following operating variances for the month of September 2017, stating clearly whether the variance is favourable (F) or adverse (A) i. Direct material price and usage variances (3 marks) i. Direct labour rate and efficiency variances (3 marks) ii. Sales price and sales volume contribution variances (3 marks) iiii Fixed overhead expenditure (1 mark) variance statement reconciling the original Create . The budgeted output for September 2017 was 1,000 lights the actual output was 1,100 units which sold for 34,950. No stocks were left at the end of the month. The actual production costs were: Direct Labour (2,150 hours) 12,210 Direct Materials (1,170 kg) 11,630 Fixed Overheads 3,200 Required: Calculate the following operating variances for the month of September 2017, stating clearly whether the variance is favourable (F) or adverse (A) i. Direct material price and usage variances (3 marks) i. Direct labour rate and efficiency variances (3 marks) i. Sales price and sales volume contribution variances (3 marks) Fixed iiii. overhead expenditure variance (1 mark) statement reconciling the original budgeted contribution to the actual contribution. Create v. a (3 marks) vi. Suggest possible reasons for the interrelationship between the above material price and usage variance marks) (4