C4. Althena Industrial Ltd. (AIL) produces a large variety of industrial vehicles and uses standard costing for all their products. AIL recently introduced a new product - large commercial truck trailers. During their first month of production, April 2020, the factory produced 5,000 trailers and incurred the following costs: Purchased 25,000 kilograms of materials at a cost of $2.95 per kilogram. There were no raw materials in inventory at the beginning of the month Used 25,000 kilograms of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) Worked 3,600 labour hours at a cost of $8.70 per hour. The standard variable costs per trailer are below: Standard Quantity or Hours Direct materials 14.0 kilograms $2.50 per kilogram $10.00 Direct labour Required: Compute the following variances for April 2017. Indicate whether the variance is favourable (F) or unfavourable (U). (10 mark) a. Direct materials price and efficiency variances. (4 mark) b. Direct labour price and efficiency variances. (4 mark) c. In proper sentence form explain the cause of the direct labour price variance. (1 mark) d. In proper sentence form explain the cause of the direct labour efficiency variance. (1 mark) Standard Price or Rate Standid Cost 0.6 hours $9.00 per hours $5.40