This information applies from Q. 18-26. Vernon Mills, Inc. is a large producer of men's and women' costs for all its products. The standard costs and actual costs per unit of product for a recent perio are given below for one of the company's product lines: Direct Materials: Standard: 6.0 metres at $5.40 per metre Direct Labour: Standard: 3.2 hours at $6.75 per hour Variable Overhead: Standard: 3.2 hours at $2.85 per hour Fixed Overhead Standard: 3.2 hours at $4.00 per hour Total Cost per unit Standard Costs $32.40 $21.60 $9.12 12.80 $75.92 During this period, the company produced 6,000 units of this product. The following additional information is available for the period: 3. A total of 40,000 meters of materials was purchased at a cost of $202,000. There was no opening inventory. b. C. The company worked 17,400 direct labour hours during the period. The cost of this labour time was $127,020 Overhead cost is applied to products based on standard direct labour hours. Related data is provided below Denominator hours Budgeted fixed overhead Actual fixed overhead costs Actual variable overhead costs Required: 19. Calculate the following production variances: a) Materials price and quantity variances 20. Labour rate and efficiency variances 18,720 $74,880 $70,470 $56,550 (20 marks) c) Variable overhead spending variance 21. )Variable overhead efficiency variance d) Fixed overhead budget and volume variances 2. The president of Vernon Company has stated that the costs are under control. Using the largest variance in Q.19-Q22 above, provide a short memo that would explain at least 2 possible causes of your selected variance (in addition to inaccurate standards). (2 marks)