Ha-Ha Company produced 7,600 comic books for the year. The direct materials quantity standard was 6 units of direct material per unit of finished goods. The amount of direct materials used in production was 46,500 units. Direct materials purchased amounted to 36,000 units. The actual direct materials cost was $3.25 each while the standard direct materials cost was $3.30 each. A process cost system is used to accumulate costs. mk4 Required:

Compute the direct materials price (at time of purchase) and efficiency variances and state whether they are favorable or unfavorable