Discount Furniture Pty Ltd manufactures a variety of desks, chairs, tables and shelf units which are sold to public school systems throughout Queensland. The accountant of the company's School Desk Division is currently preparing a budget for the first quarter of 2021. The following sales forecast has been made by the division's sales manager. January 5,000 desk and chair sets February 6,000 desk and chair sets March 7,000 desk and chair sets April 7,000 desk and chair sets May 6,000 desk and chair sets . . . Each desk and chair set requires 10 metres of pine planks and 1.5 hours of direct labour. Each set sells for $50. All sales are on credit, with 60% collected in the month of sale and 40% collected in the month following sale. Pine planks cost $0.50 per metre and the division ends each month with enough wood to cover 10 per cent of the next month's production requirements. The division incurs a cost of $20.00 per hour for direct labour wages and fringe benefits. The division ends each month with enough finished goods inventory to cover 20 per cent of the next month's sales. . . In the month of February: 7000 desk and chair sets were made and sold. . 72,000 metres of pine planks were used costing $0.48 per metre. 10,200 hours were required at a rate of $18 per hour. . 6 1. Calculate the material price variance. (2.5 marks) 2. Calculate the material usage variance. (2.5marks) 3. Calculate the labour rate variance. (2.5 marks) 4. Calculate the labour efficiency variance. (2.5 marks) 5. Explain how to investigate the variances and what the possible causes are