Question 3 (20 marks) Quantum produced a product with the following standard and actual costs per unit for last period during which 1,000 units were actually produced. Standard Actual Direct materials $5.00 Standard - 2 kg at $2.50/kg Actual 2.1 kg at $2.60 /kg $5.46 Direct labor Standard 1.5 hours at $6.00/ hour $9.00 Actual 1.4 hours at $6.50/ hour $9.10 Required: Based on the above information, calculate the following variances indicating whether they are Favorable (F) or Adverse (A): (a) Material Price Variance (3 marks) (i) (ii) Material Quantity Variance (iii) Direct Labor Rate Variance (3 marks) (3 marks) (iv) Direct Labor Efficiency Variance (3 marks) Give ONE possible reason for each of the following variances: (b) (2 marks) (i) Favorable Material Price Variance (ii) Unfavorable Material Quantity Variance (2 marks) (iii) Unfavorable Labor Rate Variance (2 marks) (iv) Favorable Labor Efficiency Variance (2 marks)