QUESTION III. 20 MARKS Montreal Corporation manufactures a single product. The standard cost per unit of product is as follows: Direct materials-2 kg of plastic at $5 per kilogram $10.00 Direct labour-2 hours at $12 per hour 24.00 Variable manufacturing overhead 8.00 Fixed manufacturing overhead 6.00 Total standard cost per unit $48.00 The master manufacturing overhead budget for the month based on the normal productive capacity of 20,000 direct labour hours (10,000 units) shows total variable costs of $80,000 ($4 per labour hour) and total fixed costs of $60,000 ($3 per labour hour). Actual costs for producing 9,500 units in November were as follows: Direct materials (21,000 kg) $102,900 Direct labour (18,500 hours) 231,250 Variable overhead 77,500 Fixed overhead 65,000 Total manufacturing costs $476,650 The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Instructions (5 marks) for each question. (a) Calculate the material price; efficiency (quantity) and total material budget variances for the period (b) Calculate the labour rate; efficiency (quantity) and total labour budget variances for the period. (c) Calculate the variable overhead spending; efficiency (quantity) and the total variable overhead budget variances for the period. (d) Calculate the fixed overhead spending; the overhead volume variance and the total budget fixed overhead variances for the period