According to the standard cost data, one unit of product Celon requires 5 direct labour hours to produce at an hourly rate of RM10. In March 2012, a total of 10,050 direct labour hours were worked to produce 2,000 units of the product. Total direct labour costs incurred were RM100,100.

a) Calculate the direct labour rate variance and direct labour efficiency variance

b) State three advantages of variance analysis