1) Question 21: McClurg Industries produces the Wolf Drone, a carbon fibre flying disc which can be controlled by an iPhone app. This is a seasonal product manufactured in November to be sold in December for the holiday gift season. The Wolf Drone has the following standard costs for materials and labor: Materials: 2 pounds @ \$30/lb. Labor: 1 hour @\$40/hour. For the month of November, the following information was reported for the McClurg Industries production department: McClurg's plant supervisor noted the following developments for the November production activities: 1. The November weather was unusually cool, which increased utility costs in the plant and office. 2. Several workers from the previous year were Newberry College student athletes who were unable to work this year because of travel to championship games and matches. They were replaced by less well-trained workers from Presbyterian College. 3. McClurg's warehouse manager found a new source of materials supply at an internet site called "Sam's Salvage Supplies." The price for carbon fibre was a particular "bargain" compared to last year's purchase from Integrity Industrial Materials. Requirements: (To get full credit, your answer must include all three parts show your work!) A. Calculate the materials price and quantity variances, indicating whether each is favorable or unfavorable, and calculate the total materials variance, indicating whether it is favorable or unfayorable. (5 points) B. Calculate the labor rate Ind efficiency variances, indicating whether each is favorable or unfavorable, and calculate the total labor variance, indicating whether it is favorable or unfavorable. (5 points) C. Provide, in one or two well-written paragraphs, possible explanations for each variance, and your recommendations to management for next season's production. ( 5 points)