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Ming Fat Limited ('Ming Fat') is a manufacturer of popular hats for teenagers in Hong Kong. The cost of each hat consists of three variable costs (direct material costs - fabric, direct manufacturing labour costs, and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead costs). Variable manufacturing overhead costs are allocated to each hat based on the budgeted direct manufacturing labour hour per hat. The budgeted direct material cost per square metre of fabric is $5. The budgeted number of hats to be manufactured in May 2023 is 1,600. The budgeted (standard) cost information for direct material and direct manufacturing labour for the hats in May 2023 is shown below. Direct material per hat: 11 square metres at \$5 per square metre of fabric Direct manufacturing labour per hat: 5 hours at $12 per direct labour hour In May 2023, Ming Fat made 1,500 hats and used 14,000 square metres of fabric costing $74,200. The direct manufacturing labour hours were 7,600 hours for $98,800. Required: a Determine the flexible budget variance, price variance and efficiency variance for direct materials in May 2023. (10 marks) b Determine the flexible budget variance, price variance and efficiency variance for direct manufacturing labour in May 2023. (10 marks)

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