2. Direct Materials (DM) Variances (1.5pts; 0.5pts each variance): Honest Joe, Corp. has set the following standards for direct materials (DM) costs per unit for the good it manufactures: Standard Quantity: 8.0 kg per unit Standard Price: $2.50 per kg During the month of October, the firm incurred the following actual DM costs to produce 4,500 units: a. Actual Total Quantity: 34,880 total kg Actual Total DM Cost: $104,640 Calculate the DM cost variance. Indicate whether this variance is favorable (F) or unfavorable (U). b. Calculate the DM price variance. Indicate whether this variance is favorable (F) or unfavorable (U). c Calculate the DM quantity variance. Indicate whether this variance is favorable (F) or unfavorable (U).