Option #2: Calculating Variance Analyses for Direct Materials and Labor The Hockey Helmet Company expects increased demand for its hockey helmets at the beginning of hockey season in September. Here is the projected data for September: The Hockey Company Variable Costs Total Fixed Costs Total Raw materials $ 325,000 Direct manufacturing labor $ 170,000 Indirect manufacturing labor $ 22,500 Factory Insurance Utilities $ 34,000 Depreciation ? Machinery and factory $ 18,500 Repairs and maintenance ? factory $ 17,000 Distribution expenses $ 20,000 $ 40,000 General and administrative expenses $ 30,000 Variable Cost and Volume Data Raw materials = 3.25 lbs. x $10.00/lb. $ 32.50 Direct Labor = 1.7 hr. x $10/hr. $ 17.00 Volume in units 10,000 Sales price per helmet is $90. Given the following additional actual data: Total Direct Costs Incurred for September Raw Materials =35,100 lbs. used $ 351,000 Direct Labor =18,360 hrs. incurred $ 183,600 Volume in units 10,800 Using the three-prong method to present your calculations, compute the direct materials price variance, the direct materials efficiency variance, the labor price variance, and the labor efficiency variance, indicating whether these are favorable or unfavorable. Below each variance calculation neatly provide one possible explanation for each of the variances