PROBLEM 1 The AQAP_AQSP_SQSP Company manufactures portable testing tools. Below are statistics related to the current operating year Standard Quantity: EACH UNIT REQURES (4) WHEELS 2000_ of Testing Tools $20 Stand Cost per each Wheel Total Units Manufactured Standard Cost of each wheel Total Actual wheels placed into production Total Actual Cost of each wheel placed into production 8,600 of Wheels $18 Actual Cost per Wheel used ne od What is the Standard Total Quantity for Wheels? 2,000 4,000 8,000 8,600 o doo Calculate the Total Materials Price Variance $2 Favorable $16,000 Unfavorable $17,200 Favorable $17,200 Unfavorable Calculate the Materials Quantity Variance a. $ 600 Favorable b. $ 600 Unfavorable c. $ 12,000 Favorable d. $ 12,000 Unfavorable Calculate the Total Materials Variance $4,000 Favorable $5,200 Favorable $5,200 Unfavorable $29,200 Favorable Management of The AQAP_AQSP_SQSP Company should... a. Investigate only Favorable Variances b. Investigate only Unfavorable Variances c. Investigate all Variances, both Favorable and Unfavorable d. Take no action since no Variances exist