G Standard Couting Planned Varances Phono Company manufactures a plastic toy cell phone. The following standards have been established for the toy materials and tabor inputs Standard Standard Price Standard Quantity (rate in 5) Cost Direct materials 0.5 lb $1.50 50.75 Direct labor 0.15 h 10.00 1:50 During the first week of July, the company had the following results Units produced 90,000 Actual labor costs 5135,000 Actual labor hours 1,400 Material purchased and used 14,250. 51.55 perib The purchasing agent located a new source of slightly higher quality plastic, and this material was used during the first week in July, soya new manufacturing layout was implemented on a trial basis. The new layout required a slightly higher level of skilled Labor. The higher quality material has no efect on tabor utilization. Similarly, the new manufacturing approach has no effect on material to More Hound all variances to the nearest dolore Required: 1. Conceptual Connection Compute the materials pnce and usage variance Material price variance Materials usage variance Assuming that the materials vroes are essentiable to the cher quality would you recommend that the purchasing agent continue to buy the quality, or should the usually be purchased? Assume that the quality of the end product is not edinity 2. Concept Connection: Comote the ser rate and efficiences Laborate vace Labor con variance Assuming that the labor variances are strutable to the tem mandaduring to shoot it be card or discreted? 2. Conceptual Connection: Refer to Rectement 2. Suppose that the trialogineer goed that the new layout should not be casted the only one week. His reasoning was that it would take at least a week for the workers to become efficient with the new approach Sprache the production is the same the second week and that the actual labor hours were 13,200 and the labor cost was 5:32.000. there is no warance, cetero sencer the dropoun. Laborator Laboratoency co should the new layout be adopted came the varices are tributable to the newly If so, what would be the projected anal sengs