Problem 1 (20 points): Tink Inc. produces fairy wands which contain the key ingredient of pixy dust. Tink Inc. requires the following inputs to complete one wand: 3 grams of pixy Direct materials standard: dust at S2 per gram Direct manufacturing labor standard: $8 per hour 1 hour at During the quarter, Tink, Inc. produced 7,000 fairy wands and used 20,000 grams of pixy dust costing $42,000. Direct manufacturing labor totaled 19,000 hours for $161,500. Required: (Compute the direct materials price and efficiency variances. Indicate whether the variances are favorable or unfavorable (10 points) (b) Compute the direct labor price & efficiency variance. Indicate whether the variances are favorable or unfavorable. (10 points)