Melanie's Matcha Iced Tea ("Matcha Inc.") has prepared the following standard cost information per bottle of iced tea: Standard Quantity (or Standard Price (or Standard Cost Hours) Rate) Direct materials 1.0 litre $2.25/litre $2.25 Direct labour 0.2 hours $15.50/hr $3.10 Nariable overhead 0.2 hours $3.25/hr $0.65 Total standard cost per bottle $6.00 The company allocates variable overhead based on direct labour hours. Last month, Matcha Inc. produced 1.150 bottles of matcha iced tea and incurred the following actual costs: Direct materials: Purchased 1,300 liters of blended matcha at $2.35 per litre. 1,200 litres of blended matcha used in production of the 1,150 bottles. Direct labour. 179 hours worked for a total cost of $2,900. Variable overhead: Total cost was $600. Vallable Overtical. Required (12 marks): a) Part 1. Calculate the direct materials price and quantity variances. Label your variances and indicate if favourable or unfavourable. (4 marks). Part 2. For each variance provide a brief discussion on the factor(s) or reason(s) the variance may have occurred in this situation. This discussion should go more in depth than, "the price went up or down." It should explain why this may have occurred. (2 marks) b) Part 1. Calculate the direct labour rate and efficiency variances. Label your variances and indicate if favourable or unfavourable. (2 marks) Part 2. For each variance provide a brief discussion on the factor(s) or reason(s) the variance may have occurred in this situation. This discussion should go more in depth than, "the price went up or down." It should explain why this may have occurred. (2 marks) c) Calculate the variable overhead spending and variable overhead efficiency variances. Label your variances and indicate if favourable or unfavourable. (2 marks)