The Hornsby company has just started a business producing a cleaning compound ,Cleanfast . The direct materials and direct labour standards for one unit of Cleanfast are given below: Standard Quantity/Hours Standard Price/Rate Direct materials 4.6 pounds $2.40 per pound Direct labour 0.2 hours $18.00 per hour During a recent month the following activity was recorded : (i) Twenty thousand of material were purchased at a cost of $46,400 . (ii) Nineteen thousand pounds were used to produce 4,000 units of Cleanfast. (iii) 750 hours of direct labour time were recorded at a total labour cost of $14,925. Required: 1.Compute the material price and quantity variances for the month . 2.Compute the labour rate and efficiency variances for the month . 3. Why has the company calculated standard prices? 4.Provide two reasons for both the Material price variance and the Labour efficiency variance.