Carol Morgan manages the production divislon of Finch Corporation. Ms. Morgan's responsibility report for the month of August follows: Controllable costs Raw materials Labor Maintenance 3,788U 5,828 U 1,680 U $28,350 $24,858 18,508 3,388 2,480 16,328 4,988 .288 11288 Total $36,558 $46,478 9,928 u The budget had called for 3,700 pounds of raw materlals at $5.50 per pound, and 3,700 pounds were used during August; however, the purchasing department pald $6.50 per pound for the materlals. The wage rate used to establish the budget was $21.00 per hour. On August 1, however, It Increased to $24.00 as the result of an Inflation Index provislon In the union contract Furthermore, the purchasing department did not provide the materlals needed In accordance with the production schedule, which forced Ms. Morgan to use 120 hours of overtime at a $36.00 rate. The projected 500 hours of labor in the budget would have been sufficlent had t not been for the 120 hours of overtime. In other words, 620 hours of labor were used In August. Required a. When confronted with the unfavorable varlances In her responslbillity report, Ms. Morgan argued that the report was unfalr because It held her accountable for materlals and labor varlances that she dld not control. Is she correct? b. Calculate the varlances of the Items Ms. Morgan's controlled during the perlod. Complete this question by entering your answers in the tabs below. Required A Required B 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. or Required B >