DWELLINGS INC. uses standard cost system and manufactures Sorbet. It has established the following for $1$ unit of Sorbet. DM $3$lbs @$$3\mathrm{.}00$ perlb$=$$$9\mathrm{.}00$ DL $1\mathrm{.}2$hrs@$$6\mathrm{.}00$perhr$=$$$7\mathrm{.}20$ Var Man OH $0\mathrm{.}6$hrs@$$2\mathrm{.}50$perlb$=$$$1\mathrm{.}50$ Total $$17\mathrm{.}70$ During July the co$.$ recorded the activity of the production of Sorbet. $6000$ units were produced during July. They purchased $16000$lbs of material @$$92000.$ No beg inv, ending inventory $4000$lbs$.17$ persons work on production at an average of $190$hrs and average rate $$6\mathrm{.}25$perhr. Var Man OH in July $$7200$ with a total of $3000$ machine hrs$.$ Compute material price variance, materials quantity variance, labour rate variance, labour effiency variance, variable overhead rate variance, variable overhead effiency variance. The materials were purchased from a new supplier who is anxious to enter into a long term contract. Would you recommend the company to sign the contract and why?