Variance Computations and Explanations Outdoor Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $20, consisting of 4 yards of fabric at $5 per yar The standards call for 2 hours of assembly at $13 per hour. The following data were recorded for October, the first month of operations: (a) Compute all standard cost variances for materials and labor. (b) Which of the following is the most likely explanation for a favorable materials price variance and an unfavorable materials quantity variance? uantity discounts and the use of highly skilled production emploes. Last minute purchases of raw materials from a trusted supplier to meet unexpected demand for final products. Bargain purchases of high quality materials. Jurchase of low quality materials