BM Inc. has established standards as follows: Inputs Standard Quantity or Hours Standard Price or Rate Direct Materials 6.6 kilos $5.00 per kilo Direct Labor 0.8 hours $14.00 per hour Variable Overhead 0.8 hours $3.00 per hour The company produced 6,000 units in May using 36,970 kilos of direct material and 4,340 direct labor-hours. During the month, the company purchased 40,400 kilos of direct material at $4.70 per kilo. The actual direct labor rate was $13.70 per hour and the actual variable overhead rate was $2.70 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required Calculate a. Material Price Variance b. Material Quantity Variance Labor Rate Variance d. Labor Efficiency Variance Variable Overhead Rate Variance f. Variable Overhead Efficiency Variance C. e. What is the difference between Operating Budget and a Continuous Budget