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In: AccountingVariancePart AThe following standard costs per unit have been established byJohn, Inc.:Material...VariancePart AThe following standard costs per unit have been established byJohn, Inc.:Material (3 kilograms at $2 per kilogram) $6.00Direct labor (2 hours at $12 per hour) $ 24.00During the month, John produced 1,100 units, which was 100 moreunits than planned.They used 3,400 kilograms and 2,050 hours to do so.Total actual materials spending was $6,460, while total actuallabor spending was $27,675.RequiredChoose EITHER materials OR labor, and compute the followingvariances:SpendingEfficiencyActivityBe sure to denote which you chose (materials or labor) and labeleach variance as favorable or unfavorable.Part BMeghan Company sells two products – Deluxe and Ultra.The following information was gathered about the twoproducts:DeluxeUltraBudgeted sales in units3,200800Budgeted selling price (unit)$300$850Actual sales in units3,5001,500Actual selling price (unit)$325$840RequiredCalculate the three main revenue variances for the Meghanproduct.Be sure to label the variances by name, as well as “favorable”or “unfavorable.”If there is insufficient information to calculate any of thevariances, please denote that clearly.