A. Explain the process of setting direct materials standards. (5 marks) B. The Excelsior Electrical Company of Mountain Side has the following standards for component B13: Standards: Material 2 units of material B Material price $10 per unit of B Direct labour 1 hour Wage rate $10 per direct labour hour Variable overhead absorption rate $25 per direct labour hour Actual results for May: Used 4,200 units of B, purchased at $9.75 per unit of B Paid for 2,000 direct labour hours at $1 1 per hour Incurred $48,000 variable overhead cost Manufactured 2,000 units of component B13 Required: Calculate the following variances for May: i. Total direct material cost variance (3 marks) ii. Direct material price variance (3 marks) iii. Direct material usage variance (2 marks) iv. Total direct labour variance (3 marks) V . Direct labour rate variance (3 marks) Vi. Direct labour efficiency variance (2 marks) vii. Total variable overhead variance (3 marks) viii. Variable overhead rate variance (3 marks) ix. Variable overhead efficiency variance (3marks)