Eko Breweries Limited, a Lagos-based manufacturer of malt drinks, operates a standard costing system. The following standard cost card relates to one crate of its flagship product, 'Eko Gold', for the month of October 2024: Direct materials: 4 kg at N500 per kg = N2,000 Direct labour: 2 hours at N800 per hour = N1,600 Variable overhead: 2 hours at N300 per hour = N600 Fixed overhead: 2 hours at N450 per hour = N900 Standard cost per crate: N5,100 Budgeted production for October 2024 was 5,000 crates. Actual results for October 2024 were as follows: Actual production: 4,800 crates Direct materials purchased and used: 20,160 kg at N480 per kg Direct labour: 9,840 hours at N820 per hour Variable overhead incurred: N2,800,000 Fixed overhead incurred: N4,600,000 Required: (a) Calculate the following variances for October 2024: (i) Direct materials price variance (ii) Direct materials usage variance (iii) Direct labour rate variance (iv) Direct labour efficiency variance (v) Variable overhead expenditure variance (vi) Variable overhead efficiency variance (vii) Fixed overhead expenditure variance (viii)Fixed overhead volume variance (16 marks) (b) Prepare a statement reconciling the budgeted cost of actual production to the actual cost of production for October 2024. (6 marks) (c) The production manager has argued that the favourable materials price variance arose because the procurement team purchased lower-grade barley. Explain TWO implications of this decision on other variances computed in (a) above. (3 marks) (Total: 25 marks)