Problem C SHOW ALL WORK! Problem C The following data apply to Roseanne Company for August, when 12,500 units were produced: Materials used: 36,000 pounds Standard materials per unit: 3 pounds at $15.00 per pound Materials purchased: 42,000 pounds at $14.80 per pound Direct labor: 28,000 hours at a total cost of $630,000 Standard labor per unit: 2.5 hours at $22 per hour. Compute the materials and labor variances. Discuss possible explanations for the variances you calculated (meaning, what might have happened?) 7 2 03 Direct Material Variances: 04 05 Material price variance Actual Cost (purchased) 06 Flexible Budget 37 38 39 10 11 2 3 4. Material quantity (or usage) variance Flexible Budget Standard (or budget) 5 6 7 8 9 0 1 Direct Labor Variances: 2 Labor efficiency variance 3 Labor rate variance Actual DL Cost 4 Flexible Budget Standard (or budget) 5 5 7 B Analysis (What are possible reasons for variances?)