-- ..-.._...__-._,_.___._ __ __ QUESTION 2 Lisle Manufacturing has developed the following standards for one of its products: STANDARD VARIABLE COST CARD ONE UNIT 0F PRODUCT Direct materials: 10 yards 1 10 per yard 100.00 Direct labour: 4 hours at 16 per hour 64.00 Variable overhead: 4 hours at 10 per hour 40.00 Total standard variable cost per unit M The company records materials price variances at the time of purchase. During August, Lisle purchased [6,000 yards of material costing 169,600 and used 12,500 yards in its manufacturing process. There was no material inventory at August I. Lisle recorded a total of 4,600 direct labour hours worked for a total payroll of 32,680. Lisle manufactured 1,200 units in August. Rguired: a. Calculate the materials price variance and indicate whether it is favorable or unfavorable. {2 marks) b. Calculate the materials usage variance and indicate whether it is favorable or unfavorable. r (2 marks) c. Calculate the labour rate variance and indicate whether it is favorable or unfavorable. (2 marks) (1. Calculate the labour efciency variance and indicate whether it is favorable orunfavorable (2 marks) e. \"If we plan carefully, we can eliminate variances.\" Do you agree? Why? (2 marks)