Managers are considering dropping a premium product line after a series of losses. Assume that dropping the premium line would not save anything in fixed manufacturing costs. Based on the information provided, answer the following. Kharak Engineering Income Statement For the Year Ended December 31, 2024 Total Basic Premium Net Sales Revenue $425,000 $305,000 $140,000 Variable Costs 246,000 159,000 44,000 Contribution Margin 242,000 146,000 96,000 Fixed Costs: Manufacturing 149,000 59,000 90,000 Selling and Administrative 88,000 75,000 13,000 Total Fixed Costs 237,000 134,000 103,000You consult for Java Manufacturing which provides the following information and asks you to calculate variances: Standard Costs Mugs Produced: 60,000 Direct Materials (0.3 lbs @ $0.20 per lb) $ 0. 0 6 Direct Labor (3 minutes @ $0.10 per minute) 0.3 Calculate the following variances (6 points): Direct Material cost: Direct Labor cost: Direct Materials efficiency: Direct Labor efficiency