You are employed as a Management Accountant, with CD Products Ltd. They use expensive equipment to make compact discs for customers in other companies. It has two manufacturing departments: the CD pressing department and the finishing department. The CD pressing department uses one machine to write digital data from a master disc to blank discs. The finishing department then prints information on the front of the discs, packages them and sends the completed discs to the customers CD products use standard costs to help prepare quotations for customers but do not yet use them for reporting purposes. Details of the standard costs used in the pressing department are as follows: Standard cost per machine hour-CD Pressing Department. Blank compact discs: 800 x$0.20 each $160.00 Labour: 8 hrs X $7.00 56.00 Fixed overheads 200.00 Standard cost of pressing 800 compact discs per machine hr $416.00 CD products has prepared the following financial and operating information for the week ended November 30, 2019. CD Pressing Department information: Budget labour hours 880 hours Actual number of compact discs manufactured 96,000 CDs Actual cost of blank compact discs issued to production $20,790 Actual price paid for each blank compact disc $0.21 Actual labour hours worked 980 hours Actual cost of Labour $7,252 ACCT3603 21/01 The Council of Community Colleges of Jamaica Page 4 Factory information: Budgeted total factory fixed costs $33,000 Actual total factory fixed costs $34,500 Budgeted total factory labour hours 1,320 Both budgeted and actual fixed overheads are apportioned between the pressing and finishing departments on the basis of budgeted labour hours. The Chief Executive of CD Products is John Brown. He tells you that the weekly financial and operating information does not help him manage the business. You suggest a standard costing statement might be more helpful. (Adapted) Required: A. Calculate the following variances for CD pressing department: i. Material price variance (2 marks) ii. Material usage variance (2 marks) iii. Labour rate variance (2 marks) iv. Labour efficiency variance (2 marks) v. Fixed overhead expenditure variance (2 marks) vi. Fixed overhead volume variance (2 marks) vii. Fixed overhead capacity variance (2 marks) viii. Fixed overhead efficiency variance (2 marks) ix. Identify FOUR (4) issues to consider before deciding to investigate a variance