Question $3.$ Sonne Company produces a perfume called Whim. The direct materials and

direct labour standards for one bottle of Whim are given below:

Standard Quantity or Hours

Direct materials $,7\mathrm{.}2$ kilograms

Direct labour

Standard Price or Rate

$$2\mathrm{.}50$ per kilogram

$$10\mathrm{.}00$ per hour

During the most recent month, the following activity was recorded:

$20000$ kilograms of material were purchased at a cost of $$2\mathrm{.}40$ per kilogram.

All of the material was used to produce $2,500$ bottles of Whim.

$900$ hours of direct labour time were recorded at a total labour cost of $$10,800.$

Required:

i$.$ Compute the direct material quantity and price variances for the month.

ii$.$ Compute the direct labour efficiency and rate variances for the month.