Montreal Inc. uses a standard cost accounting for the manufacture of exhaust fans. Montreal Inc. uses a flexible budget to forecast standard costs at various levels of activity. For the past year, Montreal Inc. had standard direct materials costs $20 per unit of exhaust fan (5 kilograms @ $4.00); standard direct labour hour costs $15 per hour, and a standard overhead rate $15 per direct labour hour. The standard overhead rate was computed based on relevant range of activity where budget overhead costs were $150,000 for 10,000 direct labour hours and $180,000 for 20,000 direct labour hours. During the past year Montreal Inc. had the following data: 1. Direct material purchased: 25,000 Kilograms at $4.50 per kilogram 2. Direct material used: 22,000 Kilograms 3. Actual direct labour costs: $114,700 4. Actual production: 4,000 units 5. Fixed overhead volume variance: $24,000 U 6. Variable overhead efficiency variance: $1,800 F 7. Actual fixed overhead costs: $130,000 8. Actual variable overhead costs: $22,000 Instructions: Calculate the following: a. Direct materials price, usage (quantity), and total direct materials budget variances. (4 Marks) b. Standard direct labour hours allowed per unit of exhaust fan and the actual direct labour rate per hour. (7 Marks) C. Direct labour rate, efficiency (quantity), and total direct labour budget variances. (3 Marks) d. Variable overhead spending and total variable overhead budget variances. (3 Marks) e. Fixed overhead spending and total fixed overhead variances