Champounds Laboratories Limited Modo varios chemical conduto industria e compound, chroma prepared when the company developed standard costs for one unit of Dichromates follow Standard Quantity or Hours Standard Cou 2 gram Standard Price Rate 52100 per gram 52400 per hour $4.00 per hour Direct materials Direct labour Variable manufacturing overhand Total standard cont per unit $42.00 34 20 13 hours 1.3 hours $70.40 During October, the following activity was recorded related to the production of Dichromate Material purchased 11,000 grams at a cost of $214,500 There was no beginning inventory of materials, however, at the end of the month 2.000 grams of material remained in aning inventory The company employs 36 la technicians to work on the production of Olomite During October, they each worried anvel 160 hours a wong pwys of $23.50 Variable manufacturing overhead is assigned to Dichromate on the basis of direct labour-hour Variable manufacturing overhead coeduring the totaled 22.000 . During October, the company produced 4.450 units of Dichromate Required: For direct materials a Calculate the price and quantity variances (2 marks) The materials were purchased from a new supplier who is us to enter into a long-term purchase contract. Would you commend that the company sign the com? Explain