E23-8 The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August Costs Quantities Actual labor rate $13 per hour Actual hours incurred and used 4,150 hours Actual materials price $128 per ton Actual quantity of materials purchased and used Standard labor rate Standard materials price $12.50 per hour $130 per ton Standard hours used Standard quantity of 1,220 tons 4,300 hours 1,200 tons materials used Instructions (a) Compute the total, price, and quantity variances for materials and labor (b) Provide two possible explanations for each of the unfavorable variances calcu- lated above, and suggest where responsibility for the unfavorable result might be placed