MiraCanto Enterpises, localed on the beaulifully green winding slopes of ML. Tahoma (known lo a few people as ML. Rainier), and internationally recognized for ils environmental friendly business praclices, produces a product called VisionBruno TM. The comparry uses a standard cost system. At the beginning of the current period. MiraCanto expected lo produce 12.000 units of VisionBruno TM using 24,000 pounds of material, and 4,800 direct labor hours. Costs were expecled to be $240,000 for direcl malerials, $72,000 for direct labor, and $24,000 for variable overhead, Variable overhead is assigned to the product on the basis of direcl labor hours. During the petiod, the following actual data was tecorded related to production of VisionBruno TM. a. The company aclually produced 11,000 units of VisionBruno TM b. Direct Materials were purchased al a cost of $245.000. There were 5,000 pounds in beginning inventory of materials; 30.000 pounds were used in production, and at the end of the month, 3.000 pounds of material remained in ending inventory. c. Direct labor cost amounted to $67,200 at a tate of $16.00 per hour. d. Aclual vatiable manulactuing overhead tate duting the period was $6.00 per direct labor hout. REQUIRED 1: Compute the following variances REQUIRED 2: What factors might have caused the quantity variance? Select all that apply Insufficient training of direct labor employees Theft of drect materials Wastage of direct materials Machine break downs Poor quality of materials REQUIRED 3: Assume that the materials were purchased from a new vendot, who is eager to sign a long-lerm contract. What olhe factors, other than the favorableness of the price, might the company want to consider before signing the contract? Financial stability of the vendor Repusation of the vendor Quality control systerns of the vendon Length of the contrast period Market forecasts on future drect material prices Delivery stancard of the vechor Purchase terms from the vendor For example, dbes the vendor recuire tulk purchases only