Sorrento-Products Lid produced 10,000 appliances (one of its many products) during June 2020. The accounting records show the following actual data: Direct materials purchased | 50,000 Kilograms @ $11 per kg Direct materials used 39,000 Kilograms Direct labour used 58,000 Hours @ $22 per hour The appliance has the following standard prime costs per unit of finished product: Direct material: 4 Kilograms @ $10 per $ 40.00 kilogram Direct labour: 6 hours @ $20 per hour $ 120.00 Standard prime cost per unit $ 160.00 You are offered to work as a part-time employee of Sorrento-Products Lid and your task is to conduct performance evaluation of the cost centres. Your main task is to conduct variance analysis. You are also expected to identify possible causes of each variance to assist the company tackle the problems and take action to improve future performance. Required: For the month of June 2020, calculate the following variances and indicate whether each variance is favourable or unfavourable: 1. Calculate Direct Materials variances: (i) Direct Materials price variance (ii) Direct Materials quantity variance (iii) Explain the meaning of the computed values under 1' (i) and (ii); also highlight the likely cause(s) for each variance. (hint: answer to this part should reflect the condition displayed by the computed variances) 2. Calculate Direct Labour variances: (i) Direct Labour rate variance (ii) Direct Labour efficiency variance (iii) Explain the meaning of the computed values under '2' (i) and (ii); also highlight the likely cause(s) for each variance. (hint: answer to this part should reflect the condition displayed by the computed variances)