Mario Corp (MC) produces a popular brand of woven rugs which it sells to wholesalers at a price of $80. MC uses standard costing and has determined the following standard costs for a budgeted production level of 32,000 units: Direct materials Direct Labour Variable MOH Fixed MOH 2.5 spools @ $3.20 per spool 1.2 hours @ $16 per DLH 1.2 hours @ $3 per DLH 1.2 hours @ $7 per DLH In the most recent month, a total of 27,000 units were produced and sold. Additional information: 1. MC purchased 61,500 spools of direct materials during the month at a total cost of $199,260. It had 1,500 spools on hand at the beginning of the month, and it ended the month with 2,600 spools. 2. During the month, MC incurred 29,600 direct labour hours at a total cost of $503,200. 3. The total manufacturing overhead during the month was $360,000, of which variable manufacturing overhead consisted of $96,200. Required: a) Calculate the following variances and note them in the blanks. Do not include brackets in your response. Space has been provided below to show calculations, if desired. This is optional. Materials price variance was $ (State F for favourable, U for unfavourable) Materials quantity variance was $ (State F for favourable, U for unfavourable) b) Calculate the following variances and note them in the blanks. Do not include brackets in your response. Space has been provided below to show calculations, if desired. This is optional. Variable overhead spending variance was $ (State F for favourable, U for unfavourable) Variable overhead efficiency variance was (State F for favourable, U for unfavourable) Use this space to show your calculations of the variances entered above. This is optional. Marks will only be awarded for variances entered in the spaces above. Prepare the journal entry(entries) necessary to record the variances calculated in Question 1 part a) above. Considering the variances calculated in Question 1, identify which variance would be most important to investigate further. Other than an incorrect standard, provide a possible explanation for the variance