Question no 3 . Penobscot Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has established the following standards for the prime costs of one unit of product: Standard Standard Price Standard Quantity Cost Direct labor 2.6 hours $44.00/hour $114.40 Direct materials 12.0 pounds $14.00/pound 168.00 During April, the company purchased 330,000 pounds of direct material at a total cost of $4,686,000. The total factory wages for April were $3,200,000, among those 90% were direct labor cost. The company manufactured 25,000 units of product during April using 302,000 pounds of direct material and 64,000 direct labor hours. Required: a) What is the price and quantity variance for the direct material acquired by the company during April? b) What is the direct labor rate and efficiency variance for April? (8 marks)