15 33 Flax Company [2] The standard cost card for FLAX, Inc. was as follows for prime cost: Direct materials 3 pounds @ $6 18 Direct labor 1.2 hours $12.50 Total prime cost per unit ACTUAL results for March were as follows: Units produced 3000 Cast per pound $6.25; actual quantity purchased and used in March: 8800 pounds Cost of direct labor: $44,000; Hours worked 3,500. Calculate the direct materials and direct labor cost, efficiency and total variances based on the provided information Show your work including the formulas used and indicate whether each variance is favorable or unfavorable b. For the direct materials variance, discuss the total variance and provide your opinion why we ended up with either a favorable or an unfavorable variance. Are there other considerations that we think may impact our business (besides cost) from this analysis? List 2 detailed observations c. Calculate direct labor cost variance, labor efficiency variance and total labor variance. Show your work including the formulas used and indicate whether each variance is favorable or unfavorable. d. For the labor variance, discuss the total variance and provide your opinion why we ended up with either a favorable or unfavorable variance. Are there are other considerations that we think may impact our business (besides cost) from this analysis? List 2 detailed observations