Required:a. Calculate the following variances:i. Material mix and yield variancesii. Material usage operating variance (for Chemical L only)iii. Labour rate planning variance

Superior Lubricants makes an anti-mst liquid called Rust-Off which is used to coat various types of metals. The company budgeted to produce 10,000 bottles of Rust-Off in December 2020. A standard costing system is used and the budgeted production costs for December is shown below: _-IIEI _ Labour at RM4 er hour Overheads all xed m Production costs Em The actual results achieved in December 2020 is as shown below: Actual roduction 9.400 bottles Chemical 3 12 000 litres 29 040 m m In mid-December. the manufacturing process was reviewed and reconfigured to meet safety standards after an audit by the Occupational Health and Safety Department. The review resulted in the required direct labour hour per unit to be increased by 5%. As better skilled labour is now needed, the wage rate is increased to RMB per hour. The target price of Chemical 5 has been increased by RM1.50 per litre due to supplyr problems in the market. The market price of Chemical L remained unchanged. Since better-quality chemicals of the same type are used under the new manufacturing configuration. the usage of Chemical 5 and Chemical L will be reduced by 20% from the current standard quantity