During April, Dryden Company's material purchases amounted to 6,500 pounds at a price of $14.8 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct labor: Direct material: $236,070 ($36.60 per hour) $63,640 ($14.8 per pound) The standards for one unit of Dryden Company's product are as follows: Direct labor: Direct material: Quantity, 3 hours per unit Quantity, 2 pounds per unit Rate, $36.00 per hour Price, $14.4 per pound Required: Compute the following variances and indicate whether each variance is favorable or unfavorable: A. Direct-material price variance. (5 points) B. Direct-material quantity variance. (5 points) C. Direct-material purchase price variance. (5 points) D. Direct-labor rate variance. (5 points) E. Direct-labor efficiency variance. (5 points) Question 3: (15 points) Information taken from Collegiate Sporting Goods Company's records for the most recent year is as follows: $ Direct material used 624,000 Direct labour 430,000 Variable manufacturing overhead 170,000 Fixed manufacturing overhead 456,000 Variable selling and administrative costs 228,000 Fixed selling and administrative costs 86,000 Required: A. Assuming the company uses absorption costing, compute the inventoriable costs for the year. (8 points) Compute the year's inventoriable costs using variable costing. (7 points) B Question 4: (20 points) A. List and explain with examples two important criteria that must be satisfied in order for information to be relevant. (10 points) B. Define the term "opportunity cost", and give an example of one. (10 points)