uning the past quarter, ologie were prod Descriptions of actual activity for the quarter follow: A total of 1.15 million decilitres of liquids was purchased, mixed, and processed. Evaporation was higher than expected (no inventories of liquids are maintained). The price paid per decilitre averaged $0.27. Exactly 250,000 bottles were used. The price paid for each bottle was $0.048. Direct labour hours totalled 48,250, with a total cost of $622,425. Normal production volume for Goodsmell is 250,000 bottles per quarter. The standard overhead rates are computed by using normal volume. All overhead- costs are incurred uniformly throughout the year. Required: 1. Calculate the upper and lower control limits for each manufacturing cost category 2. Compute the total materials variance, and break it into price and usage variances. Would these variances be investigated? 3. Compute the total labour variance, and break it into rate and efficiency variances. Would these variances be investigated