BagitUP company manufactures paper bags. Consider the following selected data

	Direct Materials	Direct Labor
Standards per paper bag	500 grams of inputs at $0.01 per gram	0.05 labor hours at $23 per labor hour

Actual performance

Paper Bags Produced and sold 17,000 bags

Direct Materials Purchased and used 8, 130,000 grams

Labor hours used 1,500 labor hours

Total direct materials costs 170,000

Total direct labor costs 45, 200

A) Calculate price variance for direct materials?

b) Provide a possible reason for the favorable or unfavorable price variance for direct materials?

C) Calculate quantity variance for direct materials?

d) Provide a possible reason for the favorable or unfavorable quantity variance for direct materials?

E) calculate labor rate variance?

f) Provide a possible reason for the favorable or unfavorable rate variance for direct labor ?

g) Calculate efficiency variance for direct labor?

h) Provide a possible reason for the favorable or unfavorable efficency variance for direct labor?