Q.2 The following direct materials and direct labor data pertain to the operations of Hsu Manufacturing Company for the month of August. Costs Quantities Actual labor rate $13 per hour Actual hours incurred and used 3,200 hours Actual materials price $89 per ton Actual quantity of materials purchased and used Standard labor rate $12 per hour Standard hours used 910 tons 3,240 hours Standard materials price $90 per ton Standard quantity of materials used 900 tons (a) Compute the total, price, and quantity variances for materials and labor. (b) Provide two possible explanations for each of the unfavorable variances calculated above, and suggest where responsibility for the unfavorable result might be placed.