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Hear Smart manufactures headphone cases. During September 2018, the company produced and sold 105,000 cases and recorded the following cost data: Standard Cost Information Quantity

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Hear Smart manufactures headphone cases. During September 2018, the company produced and sold 105,000 cases and recorded the following cost data: Standard Cost Information Quantity Cost Direct Materials 2 parts $ 0.15 per part Direct Labor 0.02 hours 8.00 per hour Variable Manufacturing Overhead 0.02 hours 10.00 per hour Fixed Manufacturing Overhead ($28,500 for static budget volume of 95,000 units and 1,900 hours, or $15 per hour) Actual Cost Information Direct Materials (209,000 parts @ $0.20 per part) (1,600 hours @ $8.15 per hour) $ 41,800 13,040 Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead 9,000 26,000 Requirements: Be sure to show all work to arrive at the answers below and include text labels for items in your calculations so it is clear what you did. 1. Compute the price and quantity variances for direct materials and direct labor. 2. Hear Smart's management used better quality materials during September. Discuss the trade- off between the two direct material variances

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