2) Below is direct material information for Crate Inc., which produces 8,000 crates: Actual direct materials: 25,000 lbs. at $5.50/lb. Standard direct materials: 30,000 lbs. at $5.00/lb. Instructions: a) Calculate the direct materials price variance, direct materials quantity variance, and the total direct materials cost variance. For each one give the dollar variance and indicate if it is a favorable or unfavorable variance. b) Who should these variances be reported to? (10 points)