2 Level 3 Analysis (17 maria) eats Inc. is a privately held furniture manufacturer For August 020, the company had the following standards for one of its roducts, a wicker chain Standards per Chall Input Cost Direct materials square meters) 1.90 $ 5.90 Required: 1. Prepare a Level 3 Variance Analysis for direct materials and direct labor (15 marks) Actual Rate Variance Hybrid Hybrid Etidency Variance Fladble Budget Direct manufacturing labour hours) GAS $ 1110 Direct materials $34,020 3,150 F 37,170 $21,830 $590 $22,420 The following data were complied regarding actual performance Actual Rate Variance Redble Budget Hybrid Direct labor $9,800 Efficiency Variance $222 1,078 $10,878 $11.100 Ataloutout unta che produced Square meters of input purchased 3. Square meters of input us 14 Price per square meter 5 Actual hours of input 35 Direct labour price per hour 2,000 6.300 3,700 5 5.40 9 S 10.00 2. Glve a plausible explanation of why each of the variances occurred (rate and efficiency variancas). (2 marks) Direct Materials Direct Labor: 20 23