Benchmarking. (CMA adapted) Syed and Shabnam Ltd. (S&S) have analyzed historical data to establish the following cost benchmarks in their industry:

During the month, the following variances for direct materials and direct labour were reported:

REQUIRED 1. Summarize what these variances mean to S&S.
2. Explain the difference between a benchmark and a standard set using industry information.LO1

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Standard Unit Cost per Budget Item Quantity Units Price Unit Direct materials 2.50 kg $ 85.00 $ 212.50 Direct labour 5.00 DLH 50.00 250.00 Variable manufacturing overhead 5.00 DLH 65.00 325.00 Fixed manufacturing overhead 5.00 DLH 70.00 350.00 Total standard cost per unit $1,137.50