D) Standards 1) Mr. Jones asks you to explain the usefulness of setting Standards for operational costs. 5 Marks 2) Mr. Jones has established some standards in respect of one of the company's products and now wants you to prepare the requested reports. Direct Materials - 6 pounds at $ 2.50 per pound Direct Labour - 3.1 hours at a rate of $ 12.00 per hour $ 15.00 $ 37.20 During the month of January, the company produces 250 units and incurs the following costs: Direct materials purchased and used - 1,600 pounds Direct Labour - 760 hours You are Required to: a) Compute the Materials Price Variance for the month b) Compute the Materials Quantity Variance for the month c) Compute the Labour Price Variance for the month d) Compute the Labour Quantity Variance for the month $ 4,192 $8,740 2 Marks 2 Marks 2 Marks 2 Marks