Part C-August Variance Analysis During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the beginning of the month. Actual data for August were as follows: Cream base Actual Direct Materials Price per Unit Quantity per Case $0.016 per oz. 102 oz. $0.32 per oz. 31 oz. $0.42 per bottle 12.5 bottles Natural oils Bottle (8-oz.) Actual Direct Labor Rate Actual Direct Labor Time per Case $18.20 19.50 min. Mixing Filling 14.00 5.60 min. Actual variable overhead $305.00 Normal volume 1,600 cases The prices of the materials were different from standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rate to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard Required-Part C: 10. Determine and interpret the direct materials price and quantity variances for the three materials. 11. Determine and interpret the direct labor rate and time variances for the two departments. Round hours to the nearest tenth of an hour. 12. Determine and interpret the factory overhead controllable variance. 13. Determine and interpret the factory overhead volume variance. 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500-case production volume rather than the planned 1,375 cases of production used in the budgets for parts (6) and (7)? Variance Analysis (Part C) 10. Determine and interpret the direct materials price and quantity variances for the three materials. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. Direct Materials Price Variance Cream Base Natural Oils Bottles $ $ $ Difference $ $ $ Direct materials price variance $ $ $ Direct Materials Quantity Variance Cream Base Natural Oils Bottles Difference $ $ $ Direct materials quantity variance $ $ $ The fluctuation in caused the direct material price variances. All the quantity variances were indicating