Question 1 Idea Ltd is a manufacturing company that uses standard costing and variance analysis to control its costs. It sets the following standards for each unit of its product produced. Direct Materials Direct Labour 4 kg at $1.2 per kg 2 hours at $1.4 per hour During the period, 9,000 units were actually produced, incurring the following costs: Direct Material Direct Labour 34,200kg at a total cost of $44,460 16,200 hours at a total cost $24,300 a. Calculate the following variances: 1. Direct Materials Price Variance 2. Direct Materials Usage Variance 3. Direct Labour Efficiency Variance 4. Direct Labour Rate Variance [4 marks] [4 marks] [4 marks] [4 marks] NOTE: You are required to show the formulae used, all relevant workings and indicate if they are favourable (F) or adverse (A). b. Explain the meaning and possible causes of the raw material variances. [4 marks] [Total: 20 marks]