Answer the following: Where as F is Favourable and U is Unfavourable

es dilemma? HOt a desirable practice ed! Explain. Should To Exercise 10-16 Materials and Labour Variances QualiTech Company produces computer circuits in large batches. Materials for the circuits are formed and polished in specialized machines that require continuous maintenance and cleaning for each batch. After forming the materials for a set number of circuits, the machines are cleaned and prepared for the next batch of materials to be formed. The following standards for machine OBJECTIVE changeovers have been established Direct materials (15 litres @ $1.80) Direct labour (0.2 hr. @ $22.00) Standard prime cost of a changeover ils $27.00 4.40 $31.40 During the year, 400,000 litres of material were purchased and used for the changeover activity. There were 25,000 batches produced, with the following prime costs: Direct materials S740,000 107,500 (for 6,300 hrs.) Direct labour The total material variance is $ (F, U) The material price variance is $ (F, U) The material usage variance is $ (F, U) The total labour variance is $ (F, U) The labour rate/price variance is $ (F, U) The labour efficiency/usage variance is $ (F, U)