3 CHAPTER 7 (6 marks) Summer Industries Inc. (SII) developed standard costs for direct material and direct labour. In 2019, SII estimated the following standard costs for one of their major products, the 3-litre heavy-duty plastic water bottle. Direct materials Direct manufacturing labour Budgeted quantity 0.20 kilograms 0.10 hours Budgeted price $25 per kilogram $15.00 per hour During July 2020, Sll produced and sold 10,000 water bottles using 2,200 kilograms of direct materials at an average actual cost per kilogram of $24 and 1,050 direct manufacturing labour hours at an average actual wage of $14.75 per hour. REQUIRED: Solve this question using either the Template Chart method (Method 1) in the space provide or choose the Formula Method (Method 2) in the space provided. Do not do both methods Method 1: Complete the following Chart for Direct Manufacturing Labour and then complete the Variances including name of the variance and mark if they are favourable or unfavourable (12 marks using the Template chart method - 1 mark each for showing calculations in each box on the template chart plus 1 mark each for each variance including F or U). Complete the Direct Manufacturing Labour Rate Variance Formula Solution in the box below (2 marks), The Direct Manufacturing Labour Rate Variance is: mark) and is F or U (1 mark). 1. (1 2. Complete the Direct Manufacturing Labour Efficiency Variance Formula Solution in the box below. The Direct Manufacturing Labour Flexible Budget Variance is: (1 mark) and is F or U (1 mark). 3. Complete the Direct Manufacturing Labour Flexible Budget Variance Formula Solution in the box below. The Direct Manufacturing Labour Flexible Budget Variance is: and is F or U (1 mark). (1 mark)