Use the variance formulas from Chapter 10 and consider the following: 1. Why are separate price and quantity variances computed? 2. If the materials price variance is favorable but the materials quantity variance is unfavorable, what might this indicate? 3. If a manager came to you and said "our workers are all under labor contracts; therefore, our labor rate variance should be zero." How would you respond? Do you think this is necessarily true? Why or why not