1. DM variances: Rabbit Hole, Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output 2.5 grams 0.8 hours 0.8 hours Standard Price or Rate $ 6.40 per gram $ 12.00 per hour $ 2.90 per hour The company planned to produce 7,400 units of output during June and has reported the following actual results for the product for June: Actual output Raw materials purchased/used Actual price of raw materials Actual direct labor-hours Actual direct labor rate Actual variable overhead rate 7,700 Units 17,940 grams 6.30 per gram 8,000 Hours 11.00 per hour 3.10 per hour Assume all of the materials purchased was used during the month to produce the 7,700 units. Calculate: a. The DM activity variance b. The DM spending variance c. The DM price variance d. The DM quantity variance