Carol Morgan manages the production division of Baird Corporation. Ms. Morgan's responsibility report for the month of August follows: Controllable costs Budget Actual Variance Raw materials $ 22, 550 $ 28, 050 $ 5,500 Unfavorable Labor 10, 088 15, 344 5, 256 Unfavorable Maintenance 3, 800 5, 300 1, 500 Unfavorable Supplies 2, 060 950 1, 050 Favorable Total $ 38, 438 $ 49, 644 $ 11, 206 Unfavorable The budget had called for 5,500 pounds of raw materials at $4.10 per pound, and 5,500 pounds were used during August; however, the purchasing department paid $5.10 per pound for the materials. The wage rate used to establish the budget was $19.40 per hour. On August 1, however, it increased to $22.40 as the result of an inflation index provision in the union contract. Furthermore, the purchasing department did not provide the materials needed in accordance with the production schedule, which forced Ms. Morgan to use 110 hours of overtime at a $33.60 rate. The projected 520 hours of labor in the budget would have been sufficient had it not been for the 110 hours of overtime. In other words, 630 hours of labor were used in August. Required a. When confronted with the unfavorable variances in her responsibility report, Ms. Morgan argued that the report was unfair because it held her accountable for materials and labor variances that she did not control. Is she correct? b. Calculate the variances of the items Ms. Morgan controlled during the period.a. When confronted with the unfavorable variances in her responsibility report, Ms. Morgan argued that the report was unfair because it held her accountable for materials and labor variances that she did not control. Is she correct? b. Calculate the variances of the items Ms. Morgan controlled during the period. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the variances of the items Ms. Morgan controlled during the period. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or "None" for no effect (i.e., zero variance). Variances Maintenance Unfavorable Supplies Favorable Total