c) Standard Costing as a Management Tool. The C.E.O. then states that production reports have shown major differences between the actual costs and what was budgeted to be incurred. You suggest to him that a standard technique be used to identify and analyse the differences. The following information about the cost to produce one item is obtained: - per Direct Materials - 6 pounds at $ 2.50 per pound $ 15.00 Direct Labour -3.1 hours 12.00 Hour $ 37.20 Direct Materials Purchased for the month - 1,600 pounds $ 4,192 Direct Labour - 760 Hours $ 8,740 250 Units were produced. You are asked to compute: 1) The total and Labour 2) Material and Material 2 Marks Price 4 Marks Price 4 Marks Variances. The Variance The Variance. Quantity 3) Labour and Quantity