QUESTION 2: The following information is provided to assist you in evaluating the performance of the production operation of Paramount Company. (Units produced (actual 22,000 units Standard costs per unit: Direct materials 5 pounds per unit of output at $1.25 pound Direct labor % hour per unit at $10 per hour Actual costs Direct materials purchased and used $136,500 (105,000 pounds) Direct labor $109,200 (10,400 hours) Required: Calculate the following items. For variances, indicate whether it is favorable (F), or unfavorable (U). Item Amount Variance (For U) 1. Direct materials price variance 2. Direct materials efficiency variance - 3. Direct labor price variance 5. Direct labor efficiency variance