7. (20 min, 15 pts) Basil Tooling uses a standard cost system to account for the costs of its one product, Standards are 4 sheets of inch steel at $110 per sheet and 14 hours of labor at a standard wage rate of $13. During July, Basil Tooling produced 600 units. Materials purchased and used totaled 2,540 sheets at a total cost of $268,850. Payroll totaled $112,930 for 8,770 hours worked. Calculate the following variances: a direct materials price variance b. direct materials quantity variance c. direct labor rate variance d. direct labor efficiency variance e. list 3 possible reasons for each