The standard costs for 1 bag of fertilizer is as follows : Direct materials (5 kg @ $3.00 / kg) $ 15.00 Direct labour (2 hr @ $10.50 / hr) 21.00 Variable overhead (2 DLH @ $2.50 / DLH) 5.00 Fixed overhead (2DLH @ $3.50 / DLH) 7.00 Total standard cost $ 48.00 Actual results for the 3 months were : Actual output 125,000 bags Direct materials (purchased and used 630,000 kg) $2,016,000 Direct labour (230,000 hrs @ $10.90 / hr) 2,507,000 Variable overhead 584,200 Fixed overhead 1,030,000 Fixed overhead rate was calculated based on the budgeted capacity of 300,000 direct labour hours (DLH). Required :

(a) Calculate the following variances :

(i) Direct material price, quantity and total variances

(ii) Direct labour rate, efficiency and total variances

(iii) Variable overhead spending, efficiency and total variances

(iv) Fixed overhead spending, volume and total variances

(b) Comment on the variances