Zap-IT produces portable solar panel units used in industrial applications and had the following available: Budget Actual Budget Variance Sales Less operating expenses $11,858,000 $12,100,000 Advertising 22,000 18,000 Less production expenses Direct Materials 4,800,000 5,064,660 Direct Labor 270,000 212,500 Variable Overhead 15,200 13,900 Rent on Equipment 3,900 6,200 Income from operations 6,746,900 6,784,740 Required: A. Complete the performance report; speculate on a possible cause for each variance (except for direct materials and direct labor) and then suggest a follow-up action for those variances. B. In order to get a better control over the amounts spent on direct materials and direct labor, the company had previously implemented the following standards and achieved the corresponding results when 6,000 units were produced: Standards Direct materials Each unit should have 100 Direct labor pounds of direct materials purchased at $8 per pound. Each unit should be produced in 3 hours at a direct labor cost of $15 per hour. Actual Results Actual production used 610,200 pounds of direct materials at an average cost of $8.30 per pound. Actual production required 17,000 direct labor hours at an average cost of $12.50 per hour. Calculate the price and quantity variance for direct materials and direct labor; as needed, round final calculations (i.e. each variance) to the nearest whole dollar. C. Given your results to part B above, speculate on a possible cause for each price and quantity variance and suggest a follow-up action for each variance.