Question 3-Standard Cost/Variances (10 marks) REFER TO PAGE 14 for GENERAL VARIANCE ANALYSIS MODEL Lido Company's standard costs are given below. Direct Materials: Direct labour: Variable overhead: Total unit cost Standard Quantity/ Standard Price/ Standard Hours 2 metres Rate $1.50 per metre Cost $3.00 1.5 hours $6.00 per hour $9.00 1.5 hours $3.40 per hour $5.10 $17.10 During the most recent period, the following activity was recorded: 1) ii) iv) Required: 840 metres of material was purchased at a cost of $1.60 per metre All of the material was used to produce 400 units of product 560 hours of direct labour time was recorded at a total labour cost of $3,640 Variable overhead is allocated based on direct labour hours, and total variable overhead cost incurred was $1,736 From the above information, compute the following variances. Show whether the variance is favourable (F) or unfavourable (U): a) Materials price variance b) Materials quantity variance c) Direct labour rate variance d) Direct labour efficiency variance e) Variable overhead spending variance f) Variable overhead efficiency variance