Adventure Mattresses produce specialised mattresses for camping. They sell their mattresses through a variety of retail outlets like BCF and Anaconda. The standard cost for producing one of their most popular mattresses is as follows: Manufacturing costs Standard Quantity Standard Price Standard Unit cost 10 metre 2 hours $2.50 per metre $10.00 per hour $25.00 $20.00 Direct Materials Direct Labour Manufacturing Overhead Variable Fixed Standard Manufacturing cost per unit 1 hours $5.00 per hour $5.00 $10.00 $60.00 Adventure Mattresses master budget was based on planned production and sales of 6 000 mattresses for 2020. Actual results were as follows: Produced 2 500 mattresses Purchased and used 120 000 metres of direct materials for a total cost of $360 000 Total direct labour cost was $123 750 for 11 250 hours Variable overhead cost was $54 000 Required: 1. Calculate the following variances and label them as either favourable (F) or unfavourable (U). Show all workings: (12 marks] Direct Materials Price Variance - Direct Materials Quantity/Volume Variance - Total Direct Materials Variance - Direct Labour Price Variance Direct Labour Quantity/Volume/Efficiency Variance Total Direct Labour Variance 2. How can the analysis of budget variances lead to continuous improvement in an organisation? [2 marks]