Part 2 Cost variance analysis Camping Company manufactures camping tents from a lightweight synthetic fabric. Each tent uses the following standard material and labor costs. Standard cost per tent Direct Labor 2 hours at $10.50 $21 Direct Material 4 yards at $5.25 $21 The following data was recorded for February, the first month of operations: Fabric purchased 9000 yards $5.00 per yard Fabric used in production 7,000 yards Direct labor used 3400 hours $10.75 per hour Actual number of Tents produced 1.650 Tents Required: Make sure you do not forget to label the variances U or F. You need to show your work either by cell reference or showing your calculation to the side. 1. Calculate the direct materials price and quantity variance and designate U or F. Please note that the materials price variance is based on actual material purchased and the quantity variance Materials price variance Materials Quantity variance 2. Calculate the direct labor rate and efficiency variances and designate U or F. Labor rate variance Labor Efciency variance 3. Explain one possible reason for each of the preceding variances listed below. Materials price variance Materials Quantity variance Labor rate variance Labor Efciency variance