(d) Calculate the direct labor efficiency variance for the month of May. Company ABC produces hats. It has provided the following information about its material and labor standards per hat: Inputs Direct materials Direct labor Standard price or rate $7.50 per yard $18 per hour Standard quantity or hours 4.5 yards 6 hours In the month of May, Company ABC purchased 9.000 yards of cloth for $83,250 and used 6.400 yards of cloth in production. The May planning budget was based on producing and selling 1,500 hats; however, the company actually produced and sold 1,480 hats in May. It took 9.200 direct labor-hours to make these hats, at a total direct labor cost of $142,600. Required (a) Calculate the direct materials price variance for the month of May, (e) Provide a brief explanation of the direct materials quantity variance from part (b). What does this variance tell us about direct materials (other than being favorable/unfavorable)? (b) Calculate the direct materials quantity variance for the month of May. (1) Provide a brief explanation of the direct labor rate variance from part (e). What does this variance tell us about direct labor (other than being favorable/unfavorable)? (c) Calculate the direct labor rate variance for the month of May