Problem 3 Possible causes for price & efficiency variance. You are preparing for a job interview with a Fortune 100 consumer products manufacturer. You are applying for a job in the finance department. This company is known for its rigorous case-based interview process. One of the students who successfully obtained a job with them upon graduation last year advised you to "know your variances cold!" When you inquired further, she told you that she had been asked to pretend that she was investigating wage and materials variances. Per her advice, you have been studying the causes and consequences of variances. You are excited when you walk in and find that the first case deals with variance analysis. You are given the following data for May for a detergent bottling plant located in Mexico: Actual Bottles filled 360,000 Direct materials used in production 6,300,000 oz. Actual direct material cost 2,205,000 pesos Actual direct manufacturing labor-hours 24,500 hours Actual direct labor cost 739,165 pesos Standards Purchase price of direct materials 0.34 pesos/oz Bottle size 15 oz. Wage rate 29.30 pesos/hour Bottles per minute 0.50 Required: a. Calculate the direct material efficiency variance and price variance for May. (Here, bottle size 15 oz. is the standard usage of material per bottle.)