Direct material variances-solving for unknowns Oakwood Inc. manufactures end tables, armchairs, and other wood furniture products from high-quality materials. The company uses a standard costing system and isolates variances as soon as possible. The purchasing manager is responsible for controlling direct material price variances, and production managers are responsible for controlling usage variances. During November, the following results were reported for the production of American Oak armchairs: Units produced.... 1,500 Direct materials purchased.. Direct materials issued into production... Standard cost per unit (12 board feet x $8) Purchase price variance... Required: armchairs 19,000 board feet 17,200 board feet $96 per unit produced $2,850 unfavorable a. Calculate the actual price paid per board foot purchased. b. Calculate the standard quantity of materials allowed (in board feet) for the number of units produced. c. Calculate the direct materials usage variance. d. What is the most likely explanation for the price and usage variances? Is this a good trade-off for management of Oakwood to make? Explain your answer.