STEFANO Company makes laptops, for which the following standards have been developed:

Question 5 (15 marks) Standard Costs and Variance Analysis STEFANO Company makes laptops, for which the following standards have been developed: Standard Inputs Standard Price Direct Costs Expected for Each. Expected per Unit of Output Unit of Output $4.5 per kilogram Direct materials 2 kilograms $22 per hour Direct labour 2.5 hours During March, production of 200 laptops was expected, but 180 laptops were completed. Direct materials purchased and used were 400 kilograms at an actual price of $5 per kilogram. Direct labour cost for the month was $10,350, and the actual pay per hour was $25.00. Instructions: a. Compute the direct-material price variance for March. (3 marks) 1:. Compute the directmaterial quantity variance for the month of March. (3 marks) c. Compute the directlabour rate (price) variance for the month of March. (3 marks) d. Compute the direct-labour efficiency (quantity) variance for the month of March. (3 marks) e. What problems/issues would you report to STEFANO's top management that relate to your ndings in parts (a) to (d)? (3 marks)