Please avoid solutions in an image format thanku Pomona Sprout Products Inc. produces a number of products, including handmade large fiberglass planters for outdoor displays. The firm, whichbegan operations at the beginning of the current year, uses a standard cost system. The standard costs for one large planter are provided below:Direct Materials (3kg @ C$ 8.00 per kg) C$ 24.00Direct labor (2hrs @ C$ 15.00 per hr)C$ 30.00Variable OverheadC$ 24.00Fixed OverheadC$ 6.00Standard Cost per unitC$ 84.00The C$6.00 fixed overhead rate is based on total budgeted fixed overhead costs of C$18,000 and estimated sales of 3,000 units. There were nochanges in any inventory account during the period. The company produced and sold 3,100 units at the following costs:Direct Materials (9,000 kg)C$ 81,270Direct labor (6,000 hrs)C$ 78,000Variable OverheadC$ 76,000Fixed OverheadC$ 16,500Total production costs incurred C$ 251,770Compute the Direct Materials Price and Usage and Labor Rate and Efficiency variance.

Variance arises when the actual costs is different from the standard costs. The results are…

Pomona Sprout Products Inc. produces a number of products, including handmade large fiberglass planters for outdoor displays. The firm, which began operations at the beginning of the current year, uses a standard cost system. The standard costs for one large planter are provided below: Direct Materials (3kg @ C$ 8.00 per kg) C$ 24.00 Direct labor (2hrs @ C$ 15.00 per hr) C$ 30.00 Variable Overhead Fixed Overhead Standard Cost per unit C$ 24.00 C$ 6.00 C$ 84.00 The C$6.00 fixed overhead rate is based on total budgeted fixed overhead costs of C$18,000 and estimated sales of 3,000 units. There were no changes in any inventory account during the period. The company produced and sold 3,100 units at the following costs: Direct Materials (9,000 kg) C$ 81,270 Direct labor (6,000 hrs) C$ 78,000 Variable Overhead C$ 76,000 Fixed Overhead C$ 16,500 Total production costs incurred C$ 251,770 Compute the Direct Materials Price and Usage and Labor Rate and Efficiency variance.