Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson uses the following standards for one unit of product.

	Standard Quantity	Standard Price or Rate
Direct Materials	5 pounds	$3.60 per pound
Direct Labor	1.25 Hours	$12.00 per Hour

In March 2023, Jackson purchased 125,000 pounds of direct material at a total cost of $475,000. The total factory wages for March were $364,000 and worked 28,000 direct labour hours. The company manufactured 22,000 units of product during March using 108,000 pounds of direct materials.

Required:

A)CalculateDirect Material Price VarianceandDirect Material Usage Varianceand indicate them as either "favourable" or

"unfavourable".(6 Marks)

B).Calculate theDirect Labor Ratevariance and theDirect Labour Efficiency varianceand label them as either "favourable" or "unfavourable".(6 Marks)

C). If you were to investigate these variances, whom would you first suspect is not doing their job (i.e., Purchasing Manager or Production Manager) and why?(3 Marks)