VitalAid Inc. manufactures a vacuum-sealed high protein food supplement that it sells to food aid organizations around the world. The company uses variable costing in conjunction with a standard costing system and has established the following standards for one package of VitalAid bars. Direct materials Direct labour Variable manufacturing overhead Total standard variable cost Standard Quantity or Hours 350 grans 0.25 hours 8.5 hours Standard Price or Standard Rate Cost $ 12.ee per kg $4.20 $13.ee per hour 3.25 $ 1.60 per hour 0.80 $8.25 During October, the company recorded the following activity relative to production of VitalAid a. The company produced 4,000 packages during October b. A total of 1,800 kilograms of material was purchased at a cost of $19,800 c There was no beginning inventory of materials, however, at the end of the month 300 kilograms of material remained in ending Inventory d. The company employs 5 people to work on the production of VitalAid During October, each employee worked an average of 185 hours at an average rate of $14.00 per hour e Variable manufacturing overhead is assigned to VitalAid on the basis of direct labour hours. Variable manufacturing overhead costs during October totalled $1,850 Required: 1. For direct materials used in the production of VitalAld. a. Compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance $ 1,800FF $ 1,200 b. This part of the question is not part of your Connect assignment b. This part of the question is not part of your Connect assignment. 2. For labour employed in the production of VitalAid: a. Compute the rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) $ 925 Labour rate variance Labour efficiency variance b. This part of the question is not part of your Connect assignment b. This part of the question is not part of your Connect assignment 3-a. Compute the variable overhead spending and efficiency variances (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead officioncy variance