TAYLOR'S UNIVERSITY AMERICAN DEGREE PROGRAM ACCT202 WINTER 2021 (30 marks) QUESTION 1 (14 marks) Nelson company established the following standards for the single product that it manufactures. Standard Cost per Unit: Direct Material @ $ 2 per kilo Direct Labor @ $6 per hour Variable Overhead @ $ 3 per hour $ 10 $ 12 $ 6 During August 2020, Nelson company experienced the following production resource use and costs. Direct Material Used in Production was 34 000 kilos costing $71400. Direct Labor Hours used in production was 12 360 hours costing $74 778. Actual production 6 500 units Actual variable Overhead $ 40 000 Required: i.) Calculate variances for a.) Material price and quantity b.) Labor rate and efficiency c.) Variable overhead spending and efficiency. (12 marks)