Question 4 Rhodes Corporation manufactures a product with the following standard costs (15 marks] Direct materials (20 yards @ R1 85 per yard) Direct labor (4 hours @ R12 00 per hour) R37 00 48 00 Standards are based on normal monthly production involving 2,000 direct labor hours (500 units of output) [TURN OV The following information pertams to July MOP13W Direct matenals purchased (16.000 yards @ R1 80 per yard) Direct matenals used (9,400 yards) Direct labor (1.880 hours @ R12 20 per hour) Actual produchon in July 460 units R28.80 22.936 Required Compute the following vanances for the month of July, indicating whether each variance is favorable or unfavourable 1 Materials purchase price variance Materials usage variance 2 3 Labor rate variance 4 Labor efficiency variance B Give potential reasons for each of the variances Be sure to consider inter- relationships among variances