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Standard Cost Card-per unit of product: Direct materials, 5 yards at $4

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Standard Cost Card-per unit of product: Direct materials, 5 yards at $4.20 $21.00 Direct labour, 1.5 hours at $15.00 $22.50 Variable overhead, 1.5 hours at $4.50 $6.75 Fixed overhead, 1.5 hours at $8.00 $12.00 Standard cost per unit $62.25 Aurora Company manufactured and sold 19,500 units of product during the year. A total of 85,800 yards of material was purchased during the year at a cost of $4.65 per yard. All of this material was used to manufacture the 19,500 units. The company had a balance of zero in both beginning and ending inventories for the year. The company worked 30,750 direct labour-hours during the year at a cost of $16.75 per hour. Overhead cost is applied to products on the basis of direct labour hours. The denominator activity level of direct labour hours was 23,800 hours. Budgeted fixed overhead costs shown on the flexible budget were $162,200, and actual fixed overhead costs were $168,000. Actual variable overhead costs were $95,000. Required: a. Compute the direct materials price and quantity variances for the year. (10 Marks) b. Compute the direct labour rate and efficiency variances for the year. (10 Marks) c. Compute the variable overhead spending and efficiency variances for the year. (10 Marks) d. Compute the fixed overhead budget and volume variances for the year. (6 Marks) For each variance calculated in Parts A through D, be sure to indicate whether the variance is Favourable or Unfavourable, and explain why.