Hazel owns a fruit smoothie shop at the local mall. Each smoothie requires 1/4 pound of mixed berries, which are expected to cost $3 per pound during the summer months. During the month of June, Hazel purchased and used 1,535 pounds of mixed berries at a cost of $2.75 per pound. Hazel's shop sold 6,000 smoothies during the month. 1. Calculate the DM price variance. Is the variance favorable or unfavorable? 2. Calculate the DM quantity variance (also known as a DM efficiency variance). Is the variance favorable or unfavorable? 3. Calculate the total DM variance. Is the variance favorable or unfavorable? 1. Calculate the DM price variance. Is the variance favorable or unfavorable? Begin by determining the formula for the price variance, then compute the price variance for the direct materials. (Enter the variance as a positive number. Enter currency amounts in the formula to the nearest cent an then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials) DM price variance 2. Calculate the DM quantity variance (also known as a DM efficiency variance). Is the variance favorable or unfavorable? Determine the formula for the quantity variance, then compute the quantity variance for the direct materials. (Enter the variance as a positive number. Enter currency amounts in the formula to the nearest cent and the round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) = DM quantity variance 3. Calculate the total DM variance. Is the variance favorable or unfavorable? (Enter the variance as a positive number.) The total DM variance is