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Paragraph Styles Question 2040 marks) Horton Company manufactures paint pens. The following unitary standards have been set by the production staff and the controller: Direct Material: Quantity: 0.4 Liters Price. $4,5 per Liter Direct Labore Quantity 10.2 hour Price S6 per hour Actual costs incurred in the production of 10.000 paint pens were as follows: Direct Material: $13,500 for 4.500 Liters Direct Labor: $14.400 for 1.800 hours Required: 1. Using the variance formulas to compute the direct-material and labor variances. Indicate whether each variance is favorable or unfavorable (30 marks) 2- Mention at least 3 reasons why each of these variances may have occurred. (10 marks)