2. Finnish, Inc., manufactures T-shirts. It sells its T-shirts to retailers in lots of one dozen. Finnish's May 2020 static budget and actual results for direct inputs are as follows: Static Budget Number of T-shirt lots (1 lot = 1 dozen) 400 Per Lot of T-shirts: Direct materials 14 meters at $1.70 per meter = $23.80 1.6 hours at $8.10 per hour = $12.96 Direct manufacturing labor Actual Results Number of T-shirt lots sold 450 Total Direct Inputs: Direct materials Direct manufacturing labor 6,840 meters at $1.95 per meter = $13,338 675 hours at $8.20 per hour=$5,535 The production manager discusses the sources of the variances: A new kind of material, which led to faster cutting and sewing was purchased in May. However, the workers used more material than usual as they learned to work with it. For now, the standards are fine. Required: a) Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2020. (10 pts) b) What is the total flexible-budget variance for both inputs (direct materials and direct manufacturing labor) combined? (5 pts) c) Beatrice Mass, the CEO, is concerned about the input variances. But she likes the quality and feel of the new material and agrees to use it for one more year. In May 2021, Finnish again produces 450 lots of T-shirts. Relative to May 2020, 4% less direct material is used, direct material price is down 4%, and 2% less direct manufacturing labor is used. Labor price has remained the same as in May 2020. Calculate the direct materials and direct manufacturing labor price and efficiency variances in May 2021. (20 pts)