Problem One: Avatar, Inc. has prepared the following standard cost sheet for one unit of the product. Direct materials (5 pounds at $3 per pound) Direct labor (2 hours at $13.00 per hour) $15.00 $26.00 During the month of November, the company manufactures 450 units and incurs the following actual costs. Direct materials purchased and used (2,000 pounds) Direct labor (1,000 hours) $8,000 $12,000 Instructions: Compute the total, price, and quantity variances for materials and labor. (AQ X AP) (SQ x SP) = Total Favorable or Unfavorable Direct Material Variances Total Direct Material Variance = (AQ X AP) (AQ SP) Total Favorable or Unfavorable Direct Material Price Variance (AQ SP) (SQ * SP) Total Favorable or Unfavorable Direct Material Quantity Variance (AHAR) (SH X SR) Total Favorable or Unfavorable Direct Labor Variances Total Direct Labor Variance (AH X AR) (AHX SR) = Total Favorable or Unfavorable Direct Labor Price (Rate) Variance = (AH X SR) (SH X SR) = Total Favorable or Unfavorable Direct Labor Quantity Variance 2. Instructions for Posting (200 to 300 words - 60pts): a. Describe and compare the operating performance for your company from 2019 to 2020 by analyzing the change in their income statements for these years. Make sure to explain how the impact of the Covid-19 pandemic affected your company's operating performance on the income statement to improve or worsen from 2019 to 2020. Due to the impact of the Covid-19 pandemic, describe how your company's daily operations possibly changed in providing products or services to its customers from 2019 to 2020. b. Describe a new service or product that you would recommend for your company to offer to its customers due to the impact of the COVID-19 pandemic. Explain how your new service or product would potentially bring value to the company's operating performance and its customers by improving: sales price, quality, and innovative features for your customer. Would your new product or service potentially increase the company's market share in comparison to its competitors by generating new types of customers and/or retaining existing customers