Question 2-Standard Costing [12 marks] In December 2021, the Mahalo management team collaborated on the preparation of a quarterly master budget for the year 2022. The budgeted costs were used as the basis for updating the company's standard costing system. The budgeted and actual results for the first quarter was: Master Quarterly Budget First Quarter Results Sales revenue Direct materials cost $ Direct labor costs Machine depreciation Net income SSSSS $ 500,000 $ 520,000 120,000 $ 118,900 $ 30,000 $ $ 86,500 $ SS 29,400 86,500 $ 189,500 $ 211,200 Other information Unit sales Machine hours 1000 chairs 100 hours 1000 chairs 97 hours Direct materials used (cubic meter of wood) Direct labor hours 4,000 cubic meters 2,000 hours 4,100 cubic meters 2,100 hours There were no beginning or ending inventories of raw materials, WIP or finished goods. REQUIRED Compute the following variances for the first quarter: a. Material price and efficiency variances (6 marks) b. Labor price and efficiency variances (6 marks)