1 Standard Costs of Jenny LTD for 2019 are as follows: (10 Marks) Jenny Ltd Standard Cost Card Cost Elements Standard Quantity x Standard Price Standard Cost Direct materials 4 kilograms $ 10 $40 Direct labour 2 hours 20 40 Variable overhead 2 hours 8 16 Fixed overhead 2 hours 4 8 $104 The company expected to work at the 30,000 direct labour hours level of activity and produce 15,000 units of product. Actual results for 2019 were as follows: 14,200 units of product were actually produced. Direct labour costs were $552,420 for 27,900 direct labour hours actually worked. Actual direct materials purchased and used during the year cost $543,320 for 57,800 kilograms. Total actual manufacturing overhead costs were $340,000 Requirements (a) Calculate the following variances for Jenny Ltd for 2019, ensuring that you indicate whether the variance is favourable or unfavourable. (4 x 1.5) 1. Direct materials price variance. 2. Direct materials quantity variance. 3. Direct labour price variance. 4. Direct labour quantity variance. (b) Explain how a standard costing system may facilitate 'management by exception'? Give examples to justify your answer (4 marks)