Techlabs Testing Inc. The company performs specialized environmental testing on water and soil samples. Their customers are government agencies and businesses. The company uses standard costs to manage their operating costs. The laboratory manager is reviewing the recent month's results with the accounting analyst, Actual Standard Direct materials 126,325 127,500 Direct labour 16,200 17,100 The analyst has broken the variances down into price and usage variances, Price Usage Direct materials (4,075) 5,250 F Direct labour (810) U 1,710 F Required: 1. a. If the management accounting policy is to investigate variances greater than 1) +/- 10% of the standard cost or 2) $5,000 and the analyst only looked at the total spending variance amounts for materials and for labour, which would be investigated? b. If the investigation policy is applied to price and usage variances, which would be investigated? 2. During the variance investigation the lab technician advises that they upgraded to a new faster testing machine that uses a differen" mix of the chemicals that is more effective than when the standards were set last year. What actions should the analyst take to revise the material and labo tandards