t the end of June, the manager of the B.C. manufacturing factory was provided with the following variance analysis report. Budget Actual Variance Favourable (F) Unfavourable (U) Production in units 302,000 319,000 17,000 F Production costs: Direct material $511,669 $522,479 $(10,810) U Direct labour 1,283,500 1,323,000 (39,500) U Variable overhead costs 90,600 94,225 (3,625) 151,000 145,945 Fixed overhead costs Total production costs 5,055 F $2,036,769 $2,085,649 $(48,880) The manager immediately called the production supervisor, demanding an explanation for the large unfavourable variance for the quarter. The production supervisor was puzzled. He thought the cost-cutting measures they had incorporated were beginning to w He certainly wasn't expecting such a large discrepancy. The standard rates the factory was using with its normal costing system are summarized below. Volume Cost Direct material 1.40 kg per unit $1.20 per kg The manager immediately called the production supervisor, demanding an explanation for the large unfavourable v quarter. The production supervisor was puzzled. He thought the cost-cutting measures they had incorporated were He certainly wasn't expecting such a large discrepancy. The standard rates the factory was using with its normal costing system are summarized below. Volume Cost Direct material 1.40 kg per unit $1.20 per kg Direct labour 0.25 hour per unit $17.00 per hour Predetermined overhead rate: Variable 0.25 hour per unit $1.20 per hour Fixed 0.25 hour per unit $2.00 per hour Other relevant information: 1. 2. A total of 454,000 kg of direct materials were purchased during the quarter at a cost of $1.30 per kilogram. A total of 435,400 kg of direct materials were used in production to manufacture 319,000 units. Payroll recorded 78,750 direct labour hours at an average cost of $16.80 per hour. 3. (a1) Calculate the following production variances. Material price variance $ Material quantity variance $ Labour efficiency variance $ Variable overhead variance $