The following standard costs apply in Thin CO, a private company which manufactures a single product. Standard weight to produce one unit Standard price per kg Standard hours to produce one unit Standard rate per hour 12 kg $9 10 hrs $4 Actual production and cost for one accounting period were: Material used 3,770 kg Material cost $35,815 Hours worked 2.755 Wages Paid $11,571 The actual output was 290 units. REQUIRED a) Calculate relevant material and labour cost variances and present these in a format suitable for presentation to the management of the company. (8 Marks) b) Explain how standard costs for material and labour might be compiled. (7 Marks)