Direct materials standard: 10 yards of fabric at $10 per yard Direct manufacturing labor standard: 5 hours at $12 per hour During the quarter, Ryan, Inc. produced 7,000 chairs and used 68,000 yards of fabric costing $816,000. Direct manufacturing labor totaled 34,500 hours for $448,500. Required: 1. Compute the direct materials price and efficiency variances. Indicate whether the variances are favorable or unfavorable. (8 points) 2. Explain the material variances. What do they mean? How might a manager interpret them? Be sure to be specific so you demonstrate that you understand variances. (2 points)