Lucy's Lucky Licorice makes delicious licorice candies. For a unit of licorice, the standard materials cost is 4 pounds of sugar at a cost of $.49 per pound. The standard cost of labor is 2.6 hours at $12.00 per hour. In February, Lucy's used 8,620 pounds of sugar at a cost of $3,875 to manufacture 2,200 units of licorice. In addition, Lucy's labor cost was $68,788, with 5,930 labor hours. .Required: 1. Compute the materials total, price and quantity variances and indicate whether the variances are favorable or unfavorable. (12 points) Hint: Materials Price Variance = AQ(AP-SP); Materials Quantity Variance = SP(AQ-SQ); Total Materials Variance = (AQ) (AP)-(SQ)(SP) 2. Compute the labor total, price and quantity variances and indicate whether the variances are favorable or unfavorable. (12 points) Hint: Labor Price Variance = AQ(AP-SP); Labor Quantity Variance = SP(AQ-SQ): Total Labor Variance = (AQ)(AP)-(SQ)(SP)Once you have calculated everything, answer the questions below