Budgeting Process and Variance Analysis for Cost Control: A manufacturing company budgeted to produce 10,000 units of a product with total direct materials cost of $100,000. However, it actually produced 9,500 units and incurred direct materials cost of $105,000. Calculate the direct materials price variance and usage variance, and interpret the results in terms of cost control and production efficiency. Discuss possible reasons for the variances and suggest actions for improvement.