2. Several years ago, PT Alepin diversified its business by establishing a business unit engaged in environmental hygiene, namely CV Usaharapih. This business unit is well developed and has a number of long term contracts with several housing estates in its area to perform environmental cleaning services. As part of its services, CV Usaharapih places a trash can for every house in its client housing estate. Based on calculations, every year the company must place 200,000 units of trash bins. At first the company bought this trash can. However, for the sake of cost savings, since two years ago the company has started to produce its own trash can. To ensure cost efficiency, a standard cost system is implemented. The following is information about the input standards for this cleaning service business that have been designed at the end of the 20X0 period to be implemented in 20x1: Standard Quantity Standard Price Standard Fee 12 gr $42 Direct material cost Direct labor $3.5 $11 1.7 jam $18.7 During the first week of January 20X1, CV Usaharapih received the following realization data: Produced units Actual labor cost Number of actual direct labor hours Raw materials purchased and used 7,000 $118,000 10,800 70,000 gr @$3.55 So far, in the production process, CV Usaharapih has always used plastic raw materials from one of its suppliers. However, at the beginning of the year, the Purchasing Division of CV Usaharapih found a vendor of higher quality plastic raw materials. The purchase and use of this plastic raw material has started since the first week of January 20X1. The company is currently also updating its production process. This new production process requires a highly skilled workforce. New raw materials (higher quality plastic) have no effect on labor utilization. However, the implementation of the new production process is expected to reduce the use of raw materials by 0.25 grams per trash can. Requested: 1) Calculate the labor rate variance (Labor rate variance & Labor efficiency variance)! (5 points) 2) Assuming that the variance in the workforce is due to the use of a new production process, should CV Usaharapih still implement this new production process? Explain