1. Gettysburg, Inc. mass-produces chairs for children. The chairs can be purchased in a variety of colors, but only one basic design. The chairs are wildly popular, especially with young, highly educated parents. The design is the key to the company's success, and there seems to be no end to the demand for their products. The following data were extracted from the company's standard cost sheet: Plastic Molding Direct Labor Variable Overhead Fixed Overhead 10 pounds at $4.50 per pound 3 feet at $3,00 per foot 4 hours at $6.00 per hour $3 per direct labor hour $55,000 per period Transactions during the month of June were as follows: Gettysburg purchased plastic at $4.45 per pound and issued 185,000 pounds to production Gettysburg purchased molding at $3.10 per foot and issued 50,000 feet to production The direct labor payroll totaled $435,000 for 72,500 hours Total overhead costs were $275,000, including $221,125 of variable overhead Gettysburg produced 18,000 chairs during the month Required 2. Interpret the material and labor variances. What do they indicate about the company's performance