Useless Company produced 16,000 widgets for the year. The direct labor efficiency standard was 3 hours per unit. The actual direct labor hours worked was 47,750. The company employs a direct labor standard wage rate of $7.25 per hour; $7.18 was the actual direct labor wage rate. A process cost system is used to accumulate costs. ml4 Required:

Compute the direct labor efficiency and price variances and state whether they are favorable or unfavorable.