(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: 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