8. LO.3 (DM & DL variances) In December, Jereza, president of Pido Inc., received the following information from Lanz Gerard, the new controller, in regard to November production of travel bags: November production 4,800 bags Actual cost of material purchased and used P14,550 Standard material allowed 0.5 square yard per bag Material quantity variance P600 U Standard price per yard of material Actual hours worked 9,760 hours Standard labor time per bag 2 hours Labor rate variance P1,464 F Standard labor rate per hour P17 26 Jereza asked Lanz to provide the following information: e. Standard prime (direct material and direct labor) cost to produce one travel bag f. Actual cost to produce one travel bag in November g. An explanation for the difference between standard and actual cost; be sure that the explanation is consistent with the pattern of the variances