P24-6B Tucker Industries produces industrial plastics. During May, the company produced and sold 42.000 sheets of plastic and recorded the following cost data: Actual Standard Total Unit Cost Cost Direct materials: Standard (3 lb @ $1.25 per lb).. Actual (134.400 lb @ $1.20 per lb). Direct labor: Standard (0.1 hr @ $6.90 per hr). Actual (4.400 hr @ $6.80 per hr).. $3.75 $161.280 0.69 29,920 Manufacturing overhead: Standard: Variable (0.2 machine hr @ $7.00 per hr)........ $1.40 Fixed ($64.000 for static budget volume of 40.000 units and 8.000 machine hours)...... 1.60 3.00 Actual........ 118,900 Total manufacturing costs. $7.44 $310.100 Required 1. Compute the price and efficiency variances for direct materials and direct labor. 2. For manufacturing overhead, compute the total variance, the flexible budget variance. and the production volume variance. 3. Prepare a standard cost income statement through gross profit to report all variances to management. Sale price of the plastic was $10.50 per sheet. 4. Tucker intentionally purchased cheaper materials during May. Was the decision wise? Discuss the tradeoff between the two materials variances.