www 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