MacGyver Corporation manufactures a product called Miracle Goo, which comes in handy for just about anything. The thick tarry substance is sold in six$-$gallon drums. Two raw materials are used; these are referred to by people in the business as A and B$.$ Two types of labor are required also. These are mixers $($labor class I$)$ and packers $($labor class II$).$ You were recently hired by the company president, Pete Thorn, to be the controller. You soon learned that MacGyver uses a standard$-$costing system. Variances are computed and closed into Cost of Goods Sold monthly. After your first month on the job, you gathered the necessary data to compute the month$$s variances for direct material and direct labor. You finished everything up by $5$:$00$ p$.$m$.$ on the $31$st$,$ including the credit to Cost of Goods Sold for the sum of the variances. You decided to take all your notes home to review them prior to your formal presentation to Thorn first thing in the morning. As an afterthought, you grabbed a drum of Miracle Goo as well, thinking it could prove useful in some unanticipated way.