1. Compute the direct materials price and quantity variances for the year indicating if they are favorable or unfavorable. (3 marks) 2. Compute the direct labor rate variance and efficiency variances for the year indicating if they are favorable or unfavorable. (3 marks) 3. Compute the variable overhead spending and efficiency variances for the year indicating if they are favorable or unfavorable. (3 marks) 4. Give one possible explanation that would explain the following three variances; direct material price variance, direct labor efficiency variance, variable overhead efficiency variance. (4 marks)