Controller Mindy Bricher is analyzing the direct material and direct labor variances for 2008. He asks you to prepare a memo outlining what to investigate and why.,The following information comes from the accounting records:,Direct Material Cost (for 600,000 pounds of material) ………………..$180,000,Units used …………………………………………………………………….550,000 pounds,Direct Labor Costs (for 270,000 hours) ………………………………….$3,780,000,Units Produced …………………………………………………………………….1,000,000,The Standard prime cost for one bar is:,Direct Materials 0.5 pounds at $0.25 per pound …………………………..$0.125,Direct Labor 0.25 hours at $15 (per hour) …………………………………..$3.750,Total Standard prime cost per bar ………………………………………………$3.875, ,1.  Compute the appropriate direct material and direct labor variances,2. Prepare a memo outlining what items should be investigated and why.