The standard cost and actual data from last month below relate to a single product of a Belfast-based manufacturing company: Standard cost per unit Kg/hours Price Direct materials (Type A) 0.7 10.00 7.00 Direct materials (Type B) 1.0 10.00 10.00 Direct materials (Type C) 1.0 9.00 9.00 Total direct materials 2.7 26.00 Direct labour 0.3 15.00 4.50 Total variable cost 30.50 Units manufactured 8,000 Actual data Kg/hours Price Direct materials (Type A) 5,488 9.80 53,782 Direct materials (Type B) 7,680 9.80 75,264 Direct materials (Type C) 7,840 8.82 69,149 Total direct materials 21,008 198,195 Direct labour 2,352 14.70 34,575 Total variable cost 232,770 Requirement (a) For direct material costs, carry out a variance analysis for last month in as much detail as is possible from the information provided. 15 marks (b) The company's production manager argued that the standard cost above was based on outdated standards in respect of direct labour. The manager decided more than one month ago to use a more highly skilled grade of labour in the belief it would be more productive. Estimates in respect of this more highly skilled grade of labour were that it would be paid 16.17 per hour. Based on this additional information, determine any planning and operational variances for direct labour for last month