Kara, the manager of Bathroom Magic established the following standards for the new cabinet Model C-12:

	Quantity standard	Price standard
Direct materials	0.85 kg per unit	$2 per kg
Direct labour	0.2 hours per unit	$17 per hour

Last month, 15,350 units of Model C-12 were produced at a cost of $26,880 for direct materials and $48,000 for direct labour. A total of 13,350 kilograms of direct materials was used. Total direct labour hours amounted to 2,740 hours. During the same period, 115,000 kilograms of direct material were purchased for $283,000. The entity's policy is to record material's price variances at the time materials are purchased.

Required:

1. What is the total standard cost for direct materials and direct labour for the output this period?
2. Calculate the price and efficiency variances for materials and labour
3. Identify any variances that are material (greater than 10% of total direct cost at standard). Discuss whether you would investigate these variances.