1. Identify the difference between practical and ideal standards in a few sentences. 2. Ruby Toy has developed a new toy called the Magic Robot. The company has a standard costing system to help control costs and has establish the following standards for the toy. Direct Material: 8 diodes per toy at $0.30 per diode; Direct Labour: 1.2 hours per toy at $7 per hour. During August, the company produced 5,000 toys. Production data on the toy for August follows: Direct Materials: 70,000 diodes were purchased at a cost of $0.28 per diode. 20,000 of these diodes were still in inventory at the end of the month. (there was no opening Inventory). Direct Labour: 6,400 direct were worked at the cost of $48,000. Compute the direct material price variance for August. What is a possible cause of this variance? 3. Using the above information in Question 2, calculate the material quantity variance and indicate a possible cause. 4. Using the information of Question 2 calculate the direct labour rate and efficiency variance, and indicate possible cause for this.