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Melon Inc. manufacturers seeds used in commercial farming operations. Seeds are packaged in 100 kilogram...

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Melon Inc. manufacturers seeds used in commercial farming operations. Seeds are packaged in 100 kilogram bags. For 2021, the company developed the following standard costs per bag for direct materials and direct labour: Direct materials (100 kilograms @ $1.25 per kilogram) Direct labour (0.5 hours @ $26 per hour) Total standard cost per 100 kg bag $125.00 $13.00 $138.00 For November, the company manufactured 1,000 bags of seed. The company purchased 97,000 kilograms of seed costing $114,460, and used 104,000 kilograms. As well, the company paid $12,120 for direct labour and used 480 labour hours. Required: (A) Compute the materials price variance and materials usage variance, and indicate whether each variance is favourable or unfavourable. (B) Compute the labour rate variance and labour efficiency variance, and indicate whether each variance is favourable or unfavourable. (C) Provide possible reasons for each of the variances computed in (A) and (B). For example, regarding the materials price variance, why would the variance be favourable / unfavourable

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