Problem: Champlain Manufacturing has two direct cost categories: direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Champlain's manufacturing costs: Direct cost categories Standard Quantity Cost per Input Unit Direct materials 7.4 pounds per output unit $ 11.15 per pound Direct Labor 0.25 hours per output unit $ 21.50 per hour Manufacturing Overhead Cost per Input Unit Variable manufacturing Overhead $ 9.25 per Direct Labor Hour May data Direct materials purchased and used $ 10.75 per pound 91,000 pounds Direct Labor $ 22.25 per hour 4,300 labor hours Actual variable manufacturing overhead $ 32,500 Actual Production 12,500 output units Part a) and Part b) Calculate the following variances: Direct Materials Price Variance and Direct Materials Quantity Variance Direct Materials Variance: Actual Results/ Units Total Actual Results Price Variance F or U AQ x SP F or U Quantity Variance F or U Total Standard Allowed Standard Allowed/ Unit Units Produced Direct Materials AQ AQ SQ Materials/Units Produced AP SP SP Price/Unit AQ x AP DMPV AQ x SP DMQV SQ x SP Total Cost DMV Total Direct Materials Variance Provide a possible reason for the favorable or unfavorable Direct Materials Price Variance. Provide a possible reason for the favorable or unfavorable Direct Materials Quantity Variance. Provide a possible reason for the favorable or unfavor