Lido Company's standard and actual costs per unit for the most recent period, during which 400 units were actually produced, are given below: Actual Cost Static Budget (500 units) $1,050.00 $1,520.00 $5,000.00 Materials: Standard: $1.40 per m. Actual: $1.90 per m. Direct labour: Standard: $5.00 per hr. Actual: $7.00 per hr. Variable overhead: Standard: $3.50 per hr. Actual: $3.00 per hr. Total unit cost $5,320.00 $3,500.00 $2,280.00 $9,120.00 $9,550.00 There was no inventory of materials at the beginning or end of the period. Required: a) What are Lido's standard and budgeted number of metres per unit? b) What is Lido's flexible budget variance? c) Is the relationship between the component materials variances (price & efficiency) consistent with your expectations? Suggest two potential causes of the relationship between the two variances. You will not receive full marks for discussing the variances in isolation d) What is Lido's direct labour efficiency variance? e) What is Lido's direct labour spending variance? f) Using the labour spending variance calculated in part e, offer one potential cause for the labour efficiency variance you calculated in part d. g) What is Lido's variable overhead spending variance? h) What is Lido's variable overhead efficiency variance? i) "When the cost driver is direct labour, the variable overhead efficiency variance and the direct labour efficiency variance will always have the same impact on net income (Favourable or Unfavourable)." Do you agree with this statement? Explain why or why not