Diamondback Ltd. has operations in Toronto and Sarnia. The company employs a standard cost system in which direct materials inventory is carried at standard cost. Diamondback has established the following standards for the prime costs of one unit of its most popular product Direct Materials Direct Labour Standard Quantity 6 kilograms 1.3 hours Standard Price $3.50/kilogram $11.00/hour Standard Cost $21.00 $14.30 $35.30 During July, Diamondback purchased 165,000 kilograms of direct materials at a total cost of $585,750. Total direct labour wages for July were $360,000. Diamondback manufactured 25,000 units of product during July, using 151,000 kilograms of direct materials and 32,000 direct labour hours. a. What was the materials price variance for July? Ensure you indicate whether the variance is favourable or unfavourable. b. What was the materials quantity variance for July? Ensure you indicate whether the variance is favourable or unfavourable. c. What was the labour rate variance for July? Ensure you indicate whether the variance is favourable or unfavourable. d. What was the labour efficiency variance for July? Ensure you indicate whether the variance is favourable or unfavourable. e. Diamondback produces a different product at its plant in Sarnia. For the past three months, the Sarnia plant has reported a favourable material rate variance combined with an unfavourable materials quantity variance. What circumstances could lead to this situation