i. Calculate the materials price variance, materials quantity variance, and the labor efficiency variance.

Question 4 Standard Costing and Variances (TOTAL: 20 marks) Part A Queenstown Baggage Limited has developed the following cost standards for the production of its leather backpacks: Leather (0.9 metre x $22 per metre) Direct labour (1.3 hours x $9 per hour) Variable overhead (1.3 hours x $15 per hour) Standard cost per backpack $19.80 $11.70 $19.50 Variable overhead at the company is applied on the basis of direct labour hours. The actual results for last month were as follows: Number of backpacks produced Direct labour hours incurred Metres of leather purchased Metres of leather used in production Cost of leather purchased Direct labour cost Variable overhead cost 15,000 18,800 14,500 14,100 $306,675 $159,800 $285,760 Required (show your calculations)