Question Two (35 Points) During June, Sunday Company manufactures a single product. The Company's material purchases amounted to 7,500 pounds at a price of $13.50 per pound. Actual costs incurred in the actual output production of 1,750 units were as follows: Direct labor: $125,000 ($21.00 per hour) Direct material: $55,350 ($13.50 per pound) The standards for one unit of Sunday Company's product are as follows: Direct labor Direct material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $19.50 per hour Price, $13.10 per pound Required: Compute the following variances and indicate whether each variance is favorable or unfavorable: 1. Direct-material price variance. 2. Direct-material quantity variance. 3. Direct-material purchase price variance. 4. Direct-labor rate variance. 5. Direct-labor efficiency variance. Question Three (9 points) Using your own words, explain under which circumstances the company would have a favorable or unfavorable direct quantity price variance