The company "Carpinteros Inc." produces oversized library shelves. The budget contains the following information: Estimated production for the period - 12 units. STANDARD COST CARD FOR LIBRARY RACKS Cost Element Estimated Quantity for Each Unit Produced Price by unit Cost per unit produced Direct materials 8 pieces $ 10.00 $ 80.00 Direct Labor 40 hours $ 6.00 $ 240.00 Indirect manufacturing costs 40 $ 0.75 $ 30.00 Total Standard Cost per unit $ 350.00 Operations of the month: Purchase of 148 pieces of direct materials for $ 11.00 each piece for a total of $ 1,628.00 Materials Used - 140 pieces Labor employed in manufacturing - 714 at $ 6.50 per hour for a total of $ 4,641.00 Indirect Manufacturing Cost - $ 406.00 Production: 14 units finished Instructions Carefully read the following above. Prepare a variance analysis between standard costs and actual costs. Classify the variations between favorable and unfavorable. Mention the reasons for the variations. Mention the impact that the variations found could have on the operation of the company.