Roseanne Company showed the following standard costs for each unit produced: Direct materials per unit Direct labor per unit 4 pounds $13 per pound 2.5 hours $18 per hour The company produced 11700 units in August and had the following data: Required: Compute the material and labor variances. Discuss possible explanations for each variance calculated (meaning, which might have happened?) Direct Material Variances: Material quantity (or usage) variance Flexible Budget Standard (or budget) Direct material qty (or usage) var = irect Labor Variances: Labor efficiency variance Labor rate variance Actual DL Cost Flexible Budget Standard (or budget) Labor rate variance = Labor efficiency variance = Analysis (What are possible reasons for variances?)