Sarah Company is a company which produces sterile products and its financial data shows that the company is fast growing. The standard and actual costs per unit for the most current period are given below and 400 units were actually produced: Standard Actual Materials: Standard: 3.2 feet at $1.5 per foot $4.80 Actual: 2.2 feet at $1.8 per foot $3.96 Direct labor: Standard: 2.1 hours at $6.5 per hour 13.65 Actual: 1.9 hours at $6.4 per hour 12.16 Variable manufacturing overhead: Actual: ? hours at $3.2 per hour Standard: ? hours at $3.6 per hour No other cost It is assumed that all of the material purchased during the period was used in production during the period. The variable manufacturing overhead is based on the direct labor hours. The firm applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: To compute the following variances and indicate whether each variance is favourable (F) or unfavourable (U): (a) the materials price variance. (1 mark) (b) the materials quantity variance. (1 mark) (c) the labor rate variance. (1 mark) (d) the labor efficiency variance. (1 mark) (e) the variable overhead rate variance. (1 mark) (f) the variable overhead efficiency variance. (1 mark) Part III (2 marks) From above Sarah Company, does the company uses the labour efficiently? Briefly explain (less than 20 words). (2 marks)