P-M:6-32B Computing standard cost variances and reporting to management (Learning Objectives 3, 4, 5) Headset manufactures headphone cases. During September 2024, the company produced 106,000 cases and recorded the following cost data: Standard Cost Information Quantity Cost Direct Materials 2 parts $ 0.16 per part Direct Labor 0.02 hours 11.00 per hour Variable Manufacturing Overhead 0.02 hours 8.00 per hour Fixed Manufacturing Overhead ($30,720 for static budget volume of 96,000 units and 1,920 hours, or $16 per hour) Actual Information Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (209,000 parts @ $0.21 per part) (1,620 hours @ $11.10 per hour) $ 43,890 17,820 9,000 30,000 Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor 1. Compute the cost and efficiency variances for direct materials and direct labor. 1. DM Eff. Var. $480 F 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 3. Headset's management used better-quality materials during September. Discuss the trade-off between the two direct material variances