1. Comprehensive variance analysis, responsibility issues. ( CMA, adapted) Styles, Inc. manufactures a full line of well-known sunglasses frames and lenses. Styles uses a standard costing system to set attainable standards for direct materials, labor, and overhead costs. Styles reviews and revises standards annually, as necessary. Department managers, whose evaluations and bonuses are affected by their departments per-formance, are held responsible to explain variances in their department performance reports. Recently, the manufacturing variances in the Image prestige line of sunglasses have caused some concern. For no apparent reason, unfavorable materials and labor variances have occurred. At the monthly staff meeting, Jack Barton, manager of the Image line, will be expected to explain his variances and suggest ways of improving performance. Barton will be asked to explain the following performance report for 2008: Actual Results Static-Budget Amounts Units sold 7,275 7,500 Revenues 596,550 600,000 Variable manufacturing costs 351,965 324,000 FIxed manufacturing costs 108,398 112,500 Gross margin 136,187 163,500 Barton collected the following information: Three items comprised the standard variable manufacturing costs in 2008: --Direct materials: Frames. Static budget cost of 49,500. The standard input for 2008 is 3.00 ounces per unit. --Direct materials: Lenses. Static budget costs of 139,500. The standard input for 2008 is 6.00 ounces per unit. --Direct manufacturing labor: Static budget costs of 135,000. The standard input for 2008 is 1.20 hours per unit. Assume there are no variable manufacturing overhead costs. The actual variable manufacturing costs in 2008 were: --Direct materials: Frames. Actual costs of 55,872. Actual ounces used were 3.20 per unit. --Direct materials: Lenses. Actual costs of 150,738. Actual ounces were 7.00 ounces per unit. Direct manufacturing labor: Actual costs of 145,355. The actual labor rate was $14.80 per hour. **Prepare a report that includes a. Selling price variance b. Price and efficiency variances for direct materials: frames, direct materials: lenses, direct manufacturing labor. Give three possible explanations for each of the three price and efficiency variances at Styles in b. (refer to b). **