Problem 2: Variance Analysis (16 marks) Roots and Harvest Company (RHC) is a national company that produces tools, devices and machines for customer to produce their own healthy and organic foods and beverages. The Beverage Division's leading product is a high quality "Roots & Harvest Fruit and Wine Press", this machine's demand took off during the Covid Pandemic. It's perfect for making wine, fruit juices, cider, and other custom-blended drinks. It's sells for $400 Canadian online or at local farm retail stores. Each press contains 2 major direct materials, wood and stainless steel. Due to the design of the product and the emphasis on country living, there is significant labour involved in building the product. During the planning process for 2021, the company used standard costing method and estimated they would produce and sell 5,000 units. The standard direct labour rate per hour is $24.00 and they budgeted a total of $480,000 in direct labour costs. The total budgeted cost for Wood Direct Material (DM) was $30,000 at 3 kg per unit. The total budgeted cost for Stainless Steel DM was $15,000 at 0.5 kg per unit. Although the budget was 5,000, demand for the year 2021 was higher than anticipated they produced and sold 5,700 units. The total actual direct labour costs were $456,000 and employees worked 3.2 hours on each unit. The actual spending on Wood DM was $47,709 and they purchased 17,670 kg. There was no ending inventory. The actual spending on Stainless Steel DM was $21,948, they purchased 3, 720 kg and still have ending inventory of 300 kg. Required a) Calculate the labour rate and efficiency variances for the year. (4 marks) b) Calculate the Wood DM price and quantity variances for the year. (4 marks) c) Calculate the Stainless Steel DM price and quantity variances for the last year. (4 marks) d) Based on the information above, assess the performance of the company for the last year regarding management of Direct Labour only (2 marks) e) Based on the information above, assess the performance of the production manager for the year. (2 marks) [TOTAL: 16 MARKS]