Question 2 (20 marks) Delicious Company manufactures a special cake. The standard cost of one unit of this cake is as follows: Direct materials: 5 pounds at $2.00 per pound Direct labor: 1 hour at $4.00 per hour Variable manufacturing overhead: 1 hour at $3.00 per hour During October, 6,000 units were produced. Selected data relating to the month's production follow: Material purchased: 35,000 pounds at $1.95 per pound Material used in production: 31,000 pounds Labor hours spent in production: 5,625 hours Labor rate variance $3,750 U Variable manufacturing overhead cost incurred..............$17,875 There was no beginning inventory of raw materials. The variable manufacturing overhead rate is based on direct labor-hours. Required: a) Compute the standard cost per unit of the special cake and the total standard costs required for October production. b) For direct materials, compute the quantity and price variances for October. (4 marks) (6 marks) c) For direct labor, compute the total actual labor cost, actual labor rate per hour and labor efficiency for October. (6 marks) d) For variable manufacturing overhead, compute the rate variance and efficiency variance. (4 marks)