(18 pts.) 4 Barkov Novelties Company, a maker of Christmas novelties, needs your help immediately. The company accountant resigned without adequate records or explanations for the data collected. In records for one product line, you find the following leaving reviewing the information for last Materials purchased Materials used Direct labor costs incurred month: 20,000 units @ $.60 each 15,000 units $36,000 Variable overhead costs incurred $6,675 Actual fixed overhead $7,200 Completed units 7,000 when You learn that the standards for the product are: Direct materials Direct labor Variable overhead Fixed overhead 2 units. 1 hour $0.95 per direct labor hour $0.60 per direct labor hour You find a copy of the budget which shows that $ 6,000 was budgeted for fixed overhead, and that variable overhead was budgeted at $9,500 10,000 direct labor hours are worked per month. You also find some handwritten notes among the accountant's work papers, which indicate the following: Standard price per unit for materials $.62 Actual average wage rate $4.80 ($.20 less than the standard) Required: a) Compute the eight variances that were discussed in class. b) Comment on the results.