1. Direct Materials Variances Carter Company has projected sales and production in units for the second quarter of next year as follows: The following materials standards have been established for a particular product: Standard quantity per unit of output 5.2 meters Standard Price 15.60 per meter The following data pertain to the actual operations concerning the product for the last month: Actual materials purchased 8,500 meters Actual cost of materials purchased $139,400 Actual materials used in production 8,500 meters Actual units produced 1,640 units REQUIRED: a. Determine the Direct material price and efficiency variances. Include whether each of the variances are favorable or unfavorable. b. Provide three potential reasons for the direct material price variance c. Provide three potential reasons for the direct material efficiency variance