8. Rain Gear, Inc., produces rain jackets. The master budget shows the following standards information and indicates the company expected to produce and sell 28,000 units for the + r. Variable manufacturing overhead is allocated based on direct labor hours. Direct materials 4 yards per unit at $3 per yard Direct labor 2 hours per unit at $10 per hour Variable mfg OH 2 direct labor hours per unit at $4 per hour Rain Gear actually produced and sold 30,000 units for the year. During the year, the company purchased and used 130,000 yards of material for $429,000. A total of 65,000 labor hours were worked during the year at a cost of $637,000. Variable overhead costs totaled $231,000 for the year. a) Provide a flexible budget of production costs for the year b) Calculate the materials price variance and materials quantity variance. Enter your calculations into the table below to present your findings: Flexible Budget Price Quantity Actual budget Variance Variance Variance c) Calculate the labor rate variance and labor efficiency variance. Enter your calculations into the table below to present your findings: Flexible Budget Rate Efficiency Actual budget Variance Variance Variance DL d) Calculate the variable overhead spending variance and variable overhead efficiency variance. Enter your calculations into the table below to present your findings: Flexible Budget Spend Efficiency Actual budget Variance Variance Variance VOH e) Company policy is to investigate all variances greater than 10 percent of the flexible budget amount for each of the three variable production costs: direct materials, direct labor, and variable overhead. Identify which of the six variances calculated in requirements b through e should be investigated. f) Provide two possible explanations for each variance identified in requirement e