Required: A. Prepare (i.e. complete) the performance report above; speculate and describe a possible cause for each variance (except for direct materials and direct labor) and then suggest a specific follow-up action for each. B. In order to get a better control over the amounts spent on direct materials and direct labor, the company had previously implemented the following standards and achieved the corresponding results when 6,200 units were produced: \begin{tabular}{lll} Direct materials & \multicolumn{1}{c}{ Standards } & \multicolumn{1}{c}{ Actual Results } \\ \hline Eachitshouldhave105poundsofmaterialspurchasedat$8perpound. & Actualproductionused610,000poundsofdirectmaterialsatanaveragecostof$7.60perpound. \end{tabular} Direct labor Each unit should be produced in 2 1/2 Actual production required 18,000 hours at a direct labor cost of $16 direct labor hours at an average cost per hour. of $15 per hour. Calculate the price and quantity variance for direct materials and direct labor; as needed, round final calculations (i.e. each variance) to the nearest whole dollar. C. Given your results to part B above, speculate and describe a possible cause for each price and quantity variance and suggest a specific follow-up action for each