2. Bob's Bean Bags produces and sells bean bag chairs. For the current year, Bob's had the following budgeted and actual information regarding one of their most popular chairs: Note: All bags produced are sold; all beans purchased are used in the current year's production. Production Budgeted 2,000 chairs Actual 2,400 chairs Direct Materials Direct labor Standard Quantities 8 lbs. of beans per chair .25 hours per chair Actual Quantities 6 lbs. of beans per chair .10 hours per chair Standard Prices $.80 per lb. $12 per hr. Actual Prices $1.20 per lb. $15 per hr. Direct materials Direct labor a) Without any calculations, circle whether the following variances will be Favorable (F), Unfavorable (U), or "Can't tell Direct labor rate variance F U Can't tell Direct labor efficiency variance FU Can't tell Direct materials price variance F U Can't tell Direct materials quantity variance F U Can't tell b) Complete the following variance report for Bob's Bean Bags (hint you already calculated the For U on the previous page): Direct Materials $ Variance For U Direct Labor $ Variance For U Price/Rate Usage/Efficiency c) What are some possible reasons for the combination of variances shown in the table