Question 2: (40 marks) Horton Company manufactures paint pens. The following unitary standards have been set by the production staff and the controller: Direct Material: Quantity, 0.4 Liters Price, $4.5 per Liter Direct Labor: Quantity, 0.2 hour Price, $6 per hour Actual costs incurred in the production of 10,000 paint pens were as follows: Direct Material: $13,500 for 4,500 Liters Direct Labor: $14,400 for 1,800 hours Required: 1. Using the variance formulas to compute the direct-material and labor variances. Indicate whether each variance is favorable or unfavorable.(30 marks) 2- Mention at least 3 reasons why each of these variances may have occurred. (10 marks)