Problem 3: Variances (24 points) Fox Company has developed the following standard costs for its product for 2016 Product A Direct materials Direct labor Man. overhead 4 pounds 3 hours 3 hours $12 24 12 548 $3 The company expected to produce 25,000 units of Product A in 2016 and work 75000 direct labor hours. Actual results for 2016 are as follows: > 26,000 units of Product A were produced. > Actual direct labor costs were $630,800 for 76,000 DL hours worked. > Actual direct materials purchased and used during the year cost $283,500 for 105,000 pounds. > Actual variable overhead incurred was $130,000 and actual fixed overhead incurred was $170,000. Instructions Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable or unfavorable. 1.Direct materials price and quantity variances