Direct materials: 2 pounds x $50 per pound Direct labour: 1.5 hours x $20 per hour Variable overhead: 1.5 hours x $10 per hour Total standard variable cost per unit The company records materials price variances at the time of purchase. The following activities occurred during the month of February: Materials purchased. Materials used Units produced Direct labour 3,000 pounds at $48 per pound 2,100 pounds 1,000 units 1,400 hours at $25 per hour $100.00 30.00 15.00 $145.00 Direct materials: 2 pounds x $50 per pound $100.00 Direct labour: 1.5 hours x $20 per hour 30.00 Variable overhead: 1.5 hours x $10 per hour 15.00 Total standard variable cost per unit $145.00 The company records materials price variances at the time of purchase. The following activities occurred during the month of February: Materials purchased Materials used Units produced Direct labour 3,000 pounds at $48 per pound 2,100 pounds 1,000 units 1,400 hours at $25 per hour 1. Material usage m Total material Calculate the following variances and indicate if they are favourable (F) or adverse (A): 1. Material price [2.5 marks] [3 marks] [1 mark] IV. Labour rate V. Labour efficiency (2.5 marks) [3 marks] VI Total labour [1 mark]