(2.) Below are the standard material and labor costs for a glotto: Material 3 pounds of lotto @ $1 per pound P 3.00 Labor 2 hours of gluing labor @ $6 per hour 12.00 Actual results in March were as follows: Production 1,000 glottos Materials purchased and used 3,200 pounds for $3,250 Hours of gluing labor worked 1,900 hours Cost of labor $11,875 Required: (a) Compute for the price, efficiency, and flexible-budget variances for direct materials and direct labor. Use U or F to indicate whether the variances are unfavorable or favorable. (b) What type of data would the production manager probably watch most closely on a day-to- day basis? (3.) Consider some data for the Cobb Company, a manufacturer of raincoats: Units Produced 10,700 Budgeted or standard amount per unit Direct materials (4 square yards @ $5.00) $20 Direct labor (2 hours @ $8.00) 16 Actual data: Direct material costs $270,000 Direct labor costs $171,600 Square yards of input purchased and used 50,000 Hours of input 22,000 Price per square yard $5.40 Labor price per hour $7.80 Required: (a) Compute for price and efficiency variances for direct materials and price and efficiency variances for direct labor. (b) Suppose that the Cobb Company control system were designed to isolate material price variances upon purchase rather than upon usage of materials. Suppose further that 60,000 square yards of material were purchased during April and that only 50,000 square yards were issued to production. Compute the purchase-price variance that would be reported by the control system. Material Purchase-Price Variance = (Quantity Purchased x Actual Price) - (Quantity Purchased x Standard Price) (c) What type of data would the production manager probably watch most on a day-to-day basis