Scandia Coat Company makes womens and mens coats. Both products require filler and lining material. The following planning information has been made available: Standard Quantity Womens Coats Mens Coats Standard Price per Unit Filler 2.5 lbs. 4.0 lbs. $1.25 Liner 6.0 yds. 8.5 yds. 6.50 Standard labor time 0.30 hr. 0.45 hr. Planned production 4,500 units 5,000 units Standard labor rate $13.40 per hr. $14.80 per hr. Scandia Coat does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, Scandia Coat experienced the following actual results: Womens Coats Mens Coats Actual production 4,300 5,500 Actual Price per Unit Actual Quantity Purchased and Used Filler $1.15 per lb. 31,950 Liner 6.80 per yd. 72,050 Actual Labor Rate Actual Labor Hours Used Womans Coat $13.25 per hr. 1,300 Mans Coat 15.00 per hr. 2,425 The expected beginning inventory and desired ending inventory were realized. Instructions 1. Prepare the following variance analyses, based on the actual results and production levels at the end of the budget year: a. Direct materials price, quantity, and total variance. b. Direct labor rate, time, and total variance. 2. Why are the standard amounts in part (1) based on the actual production at the end of the year instead of the planned production at the beginning of the year?