Hear Smart manufactures headphone cases. During September 2024, the company produced and sold 105,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. Standard Cost Information \begin{tabular}{lrc} & Quantity & \multicolumn{1}{c}{ Cost } \\ \hline Direct Materials & 2 parts & $0.15 per part \\ Direct Labor & 0.02 hours & 10.00 per hour \\ Variable Manufacturing Overhead & 0.02 hours & 8 per hour \\ Fixed Manufacturing Overhead ( $28,500 for static budget volume of 95,000 \\ units and 1,900 hours, or $15 per hour) & \\ \hline \end{tabular} Actual Cost Information \begin{tabular}{llr} \hline Direct Materials & (209,000 parts @ $0.20 per part) & $41,800 \\ Direct Labor & (1,600 hours @ $10.10 per hour) & 16,160 \\ Variable Manufacturing Overhead & & 9,000 \\ Fixed Manufacturing Overhead & 26,000 \\ \hline \end{tabular} Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 3. Hear Smart's management used better quality materials during September. Discuss the trade-off between the two direct material variances