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Krane Company has a standard costing system and keeps all its costs up to date. The s beach towels which are made in a single department. The standard variable coats for are as follows company's main product one beach towel (uni Direct materials (3 yards at $1.00 per yard) Direct labor (1/2 hour at $9.00 per hour) Variable overhead (1/2 hour @ $5.00 per direct labor hour) Standard variable cost per unit $3.00 4.50 2.50 $10.00 The company's normal capacity is 10,000 direct labor hours. Its budgeted fixed overhead costs for the year were $24,000. During the year, it produced and sold 22,000 beach towels and it purchased 66,250 yards of direct materials; the purchase cost was $0.99 per yard. The average labor rate was $9.10 per hour, and 10,900 direct labor hours were worked. The company's actual variable overhead costs for the year were $55,100, and its fixed costs were $24,500 Using the data given, compute the following using formulas or diagram form 1. Direct materials cost variances: a. Direct materials price variance