Q3. XYZ Company manufactures stationery . The following unitary standards have been agreed upon by the production manager and the chief accountant: Direct Material: Direct Labor: Quantity, 0.2 Liters Quantity, 0.1 hour Price, $3 per Liter Price, $6 per hour Actual costs incurred in the production of 20,000 pens were as follows: Direct Material: $11,250 for 4,500 Liters Direct Labor: $12,600 for 1,800 hours Required: 1. Using the variance formulas compute the direct- material and labor variances. Show the possible reasons for each type of variance