Question 3 (a) During March, Warren Company's material purchases amounted to 6,500 pounds at a price of $7.40 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct labour: Direct material: $118,035 ($18.30 per hour) $31,820 ($7.40 per pound) The standards for one unit of Warren Company's products are as follows: Direct labour Direct material 3 hours per unit 2 pounds per unit Rate $18 per hour $7.20 per pound 9 Required: Compute the direct-material price and quantity variances and the direct-labor and efficiency variances. Indicate whether each variance is favorable or unfavorable. (6 Marks) (b) Discuss several ways in which standard-costing systems should be adapted in today's manufacturing environment. (4 Marks)