E10.23 Straight-forward calculation of variances: manufacturer During June, Andrew Ltd's material purchases amounted to 6500 kilograms at a price of $7.40 per kg. Actual production costs incurred in the production of 2000 units were as follows: Standard Direct labour: Standard Direct material: Quantity 3.00 hour per unit Quantity 2 kilograms per Rate $18.00 per hour Price $7.20 per kilogram Actual data: Material purchases 6,500 kilograms Price $7.40 per kilogram Actual costs incurred in the production of 2,000 units were as follows: Direct labour: $118,035 $18.30 per hour Direct material: $31,820 $7.40 per kilogram Required: Use the variance formulas to compute the direct material price and quantity variances and the direct labour rate and efficiency variances. Indicate whether each variance is favourable or unfavourable