E10.4 (LO 4), AP Adventura Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL. usage and price expectations. Direct materials 10 square yards per unit @ $5/square yard Direct labor 1.2 DL hours per unit @ $15/DL hour Throughout the year, Adventura used 34,000 square yards of fabric in the process of making 3,250 tents. The company had originally planned to produce and sell 3,000 tents. In keeping with its desire to hold some DM Inventory at year-end, it purchased 36,000 square yards of canvas at $5.15 per square yard. Adventura's DL. cost totaled $60,480 for the 3,780 hours that were actually used. Required a. Determine Adventura's DM and DL price and efficiency variances; specify the amount and sign for all. b. Record the journal entries to accompany these three transactions: (1) the purchase of DM on account, (2) the usage of DM. and (3) DL. cost incurred (accrued). c. Give at least one plausible explanation for each variance. Are there any situations that would explain both DM variances? Both DL. variances? d. How could these variance results impact planning and goal-setting for next year?