Question 8 Soren Health Corporation provides Covid testing for medical professional. Shown below are the standard costs for a Covid test:

Direct materials (2 test tubes @ $1.30 per tube) $2.60

Direct labor (1 hour @ $24 per hour) 24.00

Variable overhead (1 hour @ $6.00 per hour) 6.00

Fixed overhead (1 hour @ $10.00 per hour) 10.00

Total standard cost per test $42.60

Actual activity for the month of November 2020, when 1,290 tests were conducted, resulted in the following:

Direct materials (2,690 test tubes) $3,228

Direct labor (1,366 hours) 31,418

Variable overhead 6,360

Fixed overhead 13,150

a) Calculate the total direct labor variance b) Calculate the direct labor price variance c) Calculate the direct labor quantity variance d) Discuss possible reasons (2 for each) why the price variance and quantity variances may have occurred