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

Direct Costs

Standard Inputs

Expected forEach.

Unit of Output

Standard Price

Expected per

Unit of Output

Direct materials

2 kilograms

$4.5 per kilogram

Directlabour

2.5hours

$22 per hour

1. During March, production of 200 laptops was expected, but 180 laptops werecompleted. Direct materialspurchasedand used were400kilogramsat an actual price of $5 per kilogram. Directlabourcost for the month was $10,350, and the actual pay per hour was $25.00.Compute the direct-material price variance for March.(3 marks)

1. Compute the direct-material quantity variance forthe month of March.(3 marks)

1. Compute the direct-labourrate (price) variance forthe month of March.(3 marks)

1. Compute the direct-labourefficiency (quantity) variance forthe month of March.(3 marks)

1. What problems/issues would you report to STEFANO's top management that relate to your findings in parts (a) to (d)?(3 marks)