41A. Great Lakes Inc. makes and sells t-shirts. Each t-shirt uses 1.5 metres of fabric. Budgeted production of t-shirts in units for the next five months is as follows: May June August September Budgeted production 32,000 28,000 26,000 24,000 22,000 July The company wants to maintain monthly ending inventories of fabric equal to 15% of the following month's budgeted production needs. The cost of fabric is $3.50 per metre. Prepare a direct materials purchases budget for the month of July 418. Camping Out Co. manufactures down sleeping bags. Each sleeping bag requires 4 kilograms of down and takes .3 hours of direct labour. The standard cost of the down used by Camping Out is $8 per kilogram and the standard labour cost is $10 per hour. In November, Camping Out purchased 15,000 kilograms of down for $120,750. During the year, the company manufactured 4,000 sleeping bags. Payroll reported a total of 1,480 direct labour hours at a cost of $14,060. Instructions a. Calculate the materials price and quantity variances and indicate whether the variances are favourable or unfavourable. b. Calculate the labour price and quantity variances and indicate whether the variances are favourable or unfavourable