Baron Ltd makes a commercial cleaning compound known as Loomp. The direct materials and direct labour standards for one unit of Loomp follow Standard Quantity or Standard Price or Rate hours Direct materials 2.1 Kg $5.50 per kg Direct Labour 0.2 hour 12.00 per hour Standard Cost $11.55 2.40 During the most recent month, the following activity was recorded a. 9,000 kg of materials were purchased at a cost of $5.20 per kg b. All of the material purchased was used to produce 4,000 units of Loomp c. A total of 750 hours of direct labour time was recorded at a total labour cost of $10,425 Required: 1. Compute the direct materials price and quantity variances for the month, please brief describe what the issue the business has. 2. Compute the direct labour rate and efficiency variances for the month, please brief describe what the issue the business has. Standard Cost metal bookends set up a standard or bench mark- industry average or industry leader Direct Materials L actual Quantity Actual Pric (A) 1000kg 5 per kg-5500 M Actual Quantity xStand Price (40xSP) 1000kg per kg5,00 Itunes wants to make 30 pairs of the books Price Variance-L-M AQ AP-AQ SP Standard Quantity X Standard Price (50) 2500kg per kg-$22,000 - AQx AP-SP) 1000g(3 per kg a perig) -900 Favourable Variance F Quantity Variance MR Direct labour L Actual Hours Actual te (AXAR) Price Variance Quantity Variance 4400 35000 M Actual Hours Standard Rate (AH) $ 5400 hours $13.5 14.150.00 5400 hours 534 per hour $15,000 Direct labour rate variance OF 4250U Efficiency Variance - AQxS#SQxSP -SPAQ SQ 300-2500