Problem 2 - Comprehensive Variance Analysis - OT Manufacturing Company produces Widgets at its Westland Widget Manufacturing facility. The company's records show the following standard cost per Widget produced Standard Quantity or Hours 4.0 pounds 0.6 hours 0.4 hours Standard Price or Rate per pound Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit $ 3.00 $ 15.00 $ 4.00 per hour per hour Standard Cost $ 12.00 9.00 1.60 $ 22.60 *Based on machine-hours. During June the plant produced 3,000 widgets and incurred the following costs: Purchased 16,000 pounds of materials at a total cost of $49,600. Used 11,600 pounds of materials in production. Worked 2.000 direct labor-hours at a total cost of $29,600. Incurred variable manufacturing overhead cost totaling $4,875 for the month. A total of 1,300 machine-hours was recorded. Required (show and label your work): 1. a. Compute the following variances for June: Materials price and quantity variances. b. Labor rate and efficiency variances. Variable overhead rate and efficiency variances. c. 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. 3. How did they do this month? Which variances, if any, do you think they should investigate? Why