Solution Systems assembles personal computers (PCs) and uses flexible budgeting and a standard costs system. Solution Systems allocates overhead based on the number of direct material parts. The company's performance report includes the following selected data: Static Budget 20,000 PCs Actual Results 22,000 PCs Sales [20,000 units @ $400/unit] $8,000,000 [22,000 units @ $420/unit] $9,240,000 Variable Manufacturing expenses: Direct materials [200,000 parts @$10/part] 2,000,000 [214,200 parts @ $9.80/part] 2,099,160 Direct labour [40,000 hours @ $14.00/hr] 560,000 Direct labour [42,500 hours @ $14.60/hr] 620,500 Variable overhead [200,000 parts @ $4.00/part] 800,000 Variable overhead [214,200 parts @ $4.10/part] 878,220 Fixed manufacturing expenses: Fixed overhead 900,000 930,000 Total Cost of Goods Sold 4,260,000 4,527,880 Gross profit $3,740,000 $4,712,120 Required: 1.Compute the price variance for direct materials and direct labour. ** 2.Compute the efficiency variances for direct materials and direct labour. ** 3.Have Solution System's managers done a good job or a poor job controlling material and labour costs? Why