Harrison, Inc. produces packaged peanut butter cracker snacks that are sold in vending machines and had the following data available: Budget 63,500 $ Actual 66,200 $ Sales Less operating costs Sales salaries Advertising 4,800 9,700 5,200 8,900 Less production expenses Direct materials Direct labor Variable overhead Rent on equipment 4,160 8,960 13,900 5,300 4,925 9,375 12,400 4,900 Income from operations $ 16,680 $ 20,500 Required: A Complete the performance report; speculate on a possible cause for each variance (except for direct materials and direct labor) and then suggest a follow-up action for those variances. B. In order to get a better control over the amounts spent on direct materials and direct labor, the company had previously implemented the following standards and achieved the corresponding results when 128,000 units were produced: Standards Actual Results Direct materials Each unit should have 1/8 pound of Actual production used 19,700 pounds direct materials purchased at $0.26 per of direct materials at an average cost of pound $0.25 per pound Direct labor Each unit should be produced in 21 seconds at a direct labor cost of $12 Actual production required 750 direct labor hours at an average cost of $12.50 per hour. per hour. Calculate the price and quantity variance for direct materials and direct labor, as needed, round final calculations (i.e. each variance) to the nearest whole dollar. C. Given your results to part B above, speculate on a possible cause for each price and quantity variance and suggest a follow-up action for each variance. What is the budget variance for sales? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. What is the budget variance for variable overhead? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. What is the price variance for direct materials? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. What is the quantity variance for direct materials? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. What is the total budget variance for direct materials? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. What is the price variance for direct labor? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. What is the quantity variance for direct labor? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. What is the total variance for direct labor? Use a positive number to indicate a favorable variance or a negative number to indicate an unfavorable variance. As needed, round final calculations (i.e. each variance) to the nearest whole dollar. What is a possible cause of the direct labor quantity variance? What follow-up action would you suggest to help address that variance