Required information [The following information applies to the questions displayed below) TA Lab Production offers the most advanced materials and capabilities to help plan create, test and manufacture products for the medical, auto, aerospace and clean energy sectors. The company provides its clients with the competitive edge for one-off concepts to high-volume production. TA Lab Production has advanced equipment for high quality, and precision manufacturing including wire EDM cutting, surface finishing and rapid prototyping. TA Lab Production is in connection with several countries to purchase its required materials. The management implemented various cost-effective approaches throughout the operation including the use of a standard cost system for all parts of its business such as the purchases of direct materials. Therefore. TA Lab Production establishes standard costs for direct materials at the beginning of each fiscal year, The current fiscal year's results seem to be satisfying for the purchasing manager, Ray Jones. He is very confident that his department has at least met the standard prices and he believes that the purchase price variance for direct materials for the year will be favorable. Below is a portion of the preliminary report submitted by the controller's office which confirms Ray's belief stated previously Total quantity purchased Average price per kilogram Standard price per kilogram Budgeted quantity per quarter 52,800 kilograns $ 66 5 76 6,600 kilograns As a result of the firm's unexpected success in an intensely competitive bidding, in the fourth quarter the purchasing department increased purchases from the budgeted normal volume of 6,600 to 33,000 kilograms to meet the increased demands. The purchasing department had to search for other options for suppliers because of this significant increase in the volume. Eventually, the company found suppliers located in several foreign countries that could provide materials with higher quality than that of TA Lab Production's regular supplier and those foreign suppliers could also meet the firm's bada Standard price per kilogram > 76 Budgeted quantity per quarter 6.600 kilograms As a result of the firm's unexpected success in an intensely competitive bidding, in the fourth quarter the purchasing department increased purchases from the budgeted normal volume of 6,600 to 33,000 kilograms to meet the increased demands. The purchasing department had to search for other options for suppliers because of this significant increase in the volume. Eventually, the company found suppliers located in several foreign countrles that could provide materials with higher quality than that of TA Lab Production's regular suppiler and those foreign suppliers could also meet the firm's needs. Since the negotiated price was $93.00 per kilogram, including shipping and import duty, the purchasing department did not initially agree with the purchase. However, after learning about the financial turmoil in several of the countries in the region, the purchasing department found out that the actual cost of the purchases would be much lower than expected due to currency devaluations; hence, Ray has come on board with this purchase. The controller, Emma Sand, does not quite agree with this purchase though. Emma has also looked into the following quarterly purchases of direct materials: Third Quarter Quarter Quarter Quarter Quantity 6,680 Purchase price (per kilogram) First Second Fourt 33.000 6,600 $ 84.00 $85.00 6,600 5.90.00 Required: 1 What would be the direct materials purchase price variance for the fourth quarter and for the year? How much of each purchase price variance is attributable to changes in foreign currency exchange rates? (Do not round intermediate calculations.) Direct materials purchase price variance for the 4th quarter Direct materials purchase price vanance for the year Price vanance due to changes in exchange rate