Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and sawI the favorable variance for operating income, conrming her decision to push the workers to get those last 390 cases off the production line before the end of the month. But as she glanced over the rest of numbers. Lexi couldn't help but wonder if there were errors in some of the line items. She was puzzled at how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efciech and reduce costs. Yet the report, shown below, showed a different story. Actu al Budget Variance Cases produced and sold 10,300 9.910 390 Favorable Sales revenue $2.030,400 $1,915.000 $165400 Favorable Less variable expenses Direct material 592,6 50 575300 11350 Unfavorable Direct labor 233,300 2?1.500 16.300 Unfavorable Variable manufacturing overhead 226,300 22 5.500 300 Unfavorable Variable selling expenses 111,800 108.600 3.200 Unfavorable Variable administrative expenses 42,6 50 41.300 1.350 Unfavorable Total variable expense 1.261,?00 1,22 2200 39.500 Unfavorable Contribution margin 313,?00 692,300 12 5,900 Favorable Less fixed expenses Fixed manufacturing overhead 113,000 115.300 2.300 Favorable Fixed selling expenses 35,150 34200 950 Unfavorable Fixed administrative expenses 135,000 133.500 1.500 Unfavorable Total fl xed expense 333,150 333.500 {3501 Favorable Operating income $435,5 50 $35 9300 $12 6250 Favorable Lexi picked up the phone and called Irvin, \"Irvin, I don't get it. We beat the budgeted operating income for the month. but look at all the unfavorable variances on the operating costs. Can you help me understand wh at's going on?" "Let me look into it and I'll get back to you." Irvin replied. Irvin gathered the following additional information about the month's performance. 0 Direct materials purchased: 53.300 pounds at a total of $610,630 I Direct materials used: 5 1,400 pounds 0 Direct labor hours worked: 25220 at a total cost of $2?3,593 0 Machine hours used: 52,000 Irvin also found the standard cost card for a case of product. Standard Price Standard Quantity Standard Cost Direct materials $1 1.35 per pound 5.00 pounds $5635 Directlabor $11.15 per DLH 2.40 DLH 26.?6 Variable overhead $4.40 per MH 5 MH 22.00 Fixed overhead $2.40 per MH 5 MH 12.00 Total standard cost per case $11151 \f(a-b) Calculate the direct material price variance and direct material quantity variance for the month. (lfvarlance iszero, select "Not Applicable" and enter 0 for the amounts.) Direct material price variance $ " V Unfavorable $ Not Applicable Direct material quantity variance Favorable