10-35 Direct-Material and Direct-Labor Variances (LO 10-1, 10-3) During May, Joliet Fabrics Corporation manufactured 570 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May. Direct material purchased: 18,700 yards at $1.45 per yard Direct material used: 10,200 yards at $1.45 per yard Direct labor: 2,800 hours at $9.22 per hour The standard prime costs for one unit of Stylex are as follows: Direct material: 20 yards at $1.42 per yard Direct labor: 4 hours at $6.00 per hour Total standard prime cost per unit of output $28.40 24.00 $52.40 $27,115 14,790 25,816 Required: Compute the following variances for the month of May. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). 1. Direct-material price variance $ 561 Unfavorable 2. Direct-material quantity variance $ 1,704 Favorable 3. Direct-material purchase price variance 4. Direct-labor rate variance $ 9,016 Unfavorable 5. Direct-labor efficiency variance $ 3,120 Unfavorable