Question 1 (15 marks) - Standard Costs and Variance Analysis STEFANO Company makes laptops, for which the following standards have been developed: Direct Costs Standard Inputs Expected for Each Unit of Output Standard Price Expected per Unit of Output $4.5 per kilogram Direct materials 1 kilogram $26 per hour Direct labour 3 hours During March, production of 120 laptops was expected, but 100 laptops were actually completed. Direct materials purchased and used were 110 kilograms at an actual price of $4 per kilogram. Direct labour cost for the month was $7,830, and the actual pay per hour was $27.00. Instructions: a. Compute the direct-material quantity variance for the month of March (3 marks) b. Compute the direct-labour rate (price) variance for the month of March. (3 marks) C. Compute the direct-labour efficiency (quantity) variance for the month of March. (3 marks) d. What is the budgeting process? Briefly explain all budgets for the full mark. (6 marks)