E11.8 (LO 2, 3), AN Writing The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August. Compute the materials and labor variances and list reasons for unfavorable variances Costs Quantities $13 per Actual labor rate Actual materials price Standard labor rate Standard materials price hour $128 per ton $12.50 Actual hours incurred and used Actual quantity of materials purchased and used 4,150 hours 1,220 tons 4,300 hours 1.200 tons per hour $130 per ton Standard hours used Standard quantity of materials used Instructions a. Compute the total, price, and quantity variances for materials and labor. b. Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might be placed